CANADA STOCKS-Energy leads TSX in broad decline after US data

Wed Jun 1, 2011 11:31am EDT
 
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   * TSX down 68.99 points, or 0.5 percent, at 13,733.89
 * Eight of the 10 main groups lower
 * U.S. data weighs on sentiment
 (Updates with details, comment)
 By Solarina Ho
 TORONTO, June 1 (Reuters) - Toronto's main stock index
kicked off the new month in negative territory on Wednesday
morning, as disappointing U.S. data pressured resource and
financial stocks and led the Canadian market into a retreat.
 Financial issues were down 0.71 percent, with four of the
top five most influential decliners from that sector. Royal
Bank of Canada (RY.TO: Quote) led with a 1.25 percent decline to
C$55.92, followed by Toronto Dominion Bank (TD.TO: Quote), which was
down 1.11 percent. Manulife Financial (MFC.TO: Quote) and Canadian
Imperial Bank of Commerce (CM.TO: Quote) were also down more than 1.5
percent.
 Economic data from the United States dampened investor
sentiment and spilled over north of the border. U.S.
private-sector payroll growth slowed sharply in May, falling to
its lowest in eight months, prompting some economists to lower
forecasts for Friday's U.S. government jobs report.
[ID:nLDE7501Y8]
 Meanwhile, the U.S. manufacturing sector fell more than
expected in May, to its slowest pace since September 2009,
according to an industry report. [ID:nOSL016366]
 "It's pretty ugly. Numbers out of the U.S. were
disappointing. ... We seem to be bitten by the same bug," said
John Kinsey, a portfolio manager at Caldwell Securities Ltd.
 "I guess it's got people worried about a double dip. ... I
think it's really the numbers that got the markets really
nervous."
 At 10:45, the Toronto Stock Exchange's S&P/TSX composite
index .GSPTSE was down 68.99 points, or 0.5 percent, at
13,733.89. Eight of the 10 main groups were lower.
 BlackBerry maker Research In Motion RIM.TO was down 3.65
percent to C$39.84. News on Tuesday that mobile phone maker
Nokia slashed its sales and profit outlook, and scrapped
forecasts for 2011 due to tumbling prices and intense
competition from Apple and Google has knocked the
already-battered shares lower. [ID:nLDE74U1CO]
 "The Nokia thing has affected RIM more than some of the
others. Nokia was the bright shining star. ... RIM had been
that until Apple came with their new products. The industry is
just so super competitive," said Kinsey, noting that earnings
are coming up in two weeks.
 "You're hearing all kinds of rumors," he said. "It's just
not a good situation right now. I think it really need to
settle down."
 Energy stocks were down 1.07 percent, with Canadian Natural
Resources off 1.52 percent at C$41.53. Oil prices fell roughly
$1 as the disappointing U.S. data clouded the demand outlook.
[O/R]
 ($1=$0.97 Canadian)