CANADA STOCKS-TSX tumbles nearly 2 pct; data feeds growth fears

Wed Jun 1, 2011 4:52pm EDT
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   * TSX down 275 points, or 1.99 pct, at 13,527.88
 * All 10 main groups close down
 * U.S. economic data weighs on sentiment
 By Julie Gordon
 TORONTO, June 1 (Reuters) - Toronto's main stock index
tumbled nearly 2 percent on Wednesday, led by financial and
energy shares, as disappointing U.S. data fueled fears that
North American economic growth is stalling.
 Data that dampened investor sentiment included a report
that the U.S. manufacturing sector fell more than expected in
May to its lowest point since Sept. 2009. [ID:nOSL016366]
 Meanwhile, private-sector payrolls growth slowed sharply,
falling to its lowest in eight months, prompting some
economists to lower forecasts for Friday's U.S. government jobs
report. [ID:nLDE7501Y8]
 "Those two economic data points were pretty disappointing
to investors, and you've seen a fairly broad sell-off --
energy, financials, technology -- are all down," said Youssef
Zohny, a portfolio manager with Van Arbor Asset
 "Investors have quite a bit of uncertainty towards the
direction of the economy."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 275 points, or 1.99 percent, at
13,527.88. All of the 10 main groups were down.
 Financial stocks, which include banks, fell 2.48 percent
and played the biggest role of any sector in leading the market
 The Royal Bank of Canada RY.TO was the biggest drag on
the the broader market, slipping 3.07 percent to C$54.88,
followed by Toronto Dominion Bank TD.TO, which was down 3.23
percent at C$80.81.
 The Canadian Imperial Bank of Commerce CM.TO closed down
3.45 percent at C$77.54, while the National Bank of Canada
NA.TO fell 2.37 percent to C$79.03 after RBC Capital Markets
downgraded both banks to "sector perform" from "outperform".
 Another big weight on the market was BlackBerry maker
Research In Motion RIM.TO, which closed down 5.13 percent at
 News that rival mobile phone maker Nokia slashed its
outlook, and scrapped forecasts for 2011 due to tumbling prices
and intense competition from Apple and Google, knocked RIM's
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 John Kinsey, a portfolio
manager at Caldwell Securities Ltd.
 The energy sector also dragged, falling 2.88 percent, led
lower by Canadian Natural Resources CNQ.TO and Suncor Energy
 ($1=$0.98 Canadian)
 (With additional reporting by Solarina Ho; Editing by Jeffrey