CANADA STOCKS-TSX slumps as oil, GDP data, AIG weigh

Mon Mar 2, 2009 1:05pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* TSX down 5.62 percent at 7,666.84

* All 10 main sectors lower

* Energy down 8.4 pct, financials sag 6.2 pct

* Canada's Q4 GDP contracts, worst performance since '91 (Recasts, adds quote, update figures)

By Jennifer Kwan

TORONTO, March 2 (Reuters) - Toronto's main stock index fell more than 6 percent on Monday, pulled lower by weaker oil prices, worries over the global financial system and data showing Canada was in the midst of a recession.

The Toronto Stock Exchange, which logged its steepest intraday percentage loss in three months, followed a global trend that saw world stocks tumble [ID:MKTS/GLOB] as big U.S. insurer American International Group AIG.N posted a $61.7 billion quarterly loss and took another multibillion-dollar lifeline from Washington. [ID:nL2130432]

The grim AIG results and broader concern about the health of the U.S. banking sector weighed heavily on investor confidence, which spilled over into Canada and helped drag the TSX financials sector down 6.2 percent.

"Investors are saying when does it stop, how much further does this go, how much further does it cost us, can these entities still survive even with government assistance," said Gareth Watson, Canadian Equity Advisor at ScotiaMcLeod.   Continued...