CANADA STOCKS-TSX falls on banks but railways ride higher

Tue Nov 3, 2009 9:56am EST
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 * TSX down 77.61 points at 10,800.74
 * Weighty banks shares weigh on index
 * Railway shares help cushion fall
 (Adds details and comments)
 By Frank Pingue
 TORONTO, Nov 3 (Reuters) - Toronto's main stock index was
lower on Tuesday morning as Royal Bank of Canada (RY.TO: Quote) and
other banks were unloaded due to concerns about the European
banking sector.
 Royal Bank shares were down 1.4 percent at C$54.15, while
Toronto-Dominion Bank (TD.TO: Quote) fell 1 percent to C$62.11.
 The slide in weighty bank shares followed poor results from
UBS UBSN.VS and a shakeup of British banks Lloyds (LLOY.L: Quote)
and Royal Bank of Scotland (RBS.L: Quote).
 Helping to cushion the early slide in the TSX was a rally
in railway stocks on news that Warren Buffett's Berkshire
Hathaway will buy railroad Burlington Northern in a $26 billion
deal. [ID:nN03483590]
 That helped boost Canadian National Railway (CNR.TO: Quote) shares
2.6 percent to C$53.96, while Canadian Pacific (CP.TO: Quote) shares
rose 4 percent to C$49.11.
 At 9:50 a.m. (1350 GMT), the S&P/TSX composite index
.GSPTSE was down 77.61 points, or 0.71 percent, at
 "The main culprits over the last little while have been the
financials," said John Kinsey, portfolio manager at Caldwell
Securities Ltd. "European banks started this earlier and it's
come across the pond and is just spreading."
 ($1=$1.08 Canadian)
 (Editing by Peter Galloway)