CANADA STOCKS-TSX dives on oil drop, Greece drags

Tue May 4, 2010 5:29pm EDT
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 * TSX falls 1.36 percent to 12,030.86
 * All 10 sectors were drop, led by energy
 (Adds details)
 By Ka Yan Ng
 TORONTO, May 4 (Reuters) - Toronto's main stock index
closed sharply lower on Tuesday, weighed down by persisting
worries about Greece's aid package that sent investors to the
safety of the U.S. dollar and hit oil prices.
 The index's heavily weighted energy sector dropped 2.12
percent as the price of oil fell 4 percent in its steepest loss
in three months.  [O/R] 
 Among battered energy stocks, Canadian Oil Sands Trust
COS_u.TO was off 4.15 percent at C$29.77, while Talisman
Energy TLM.TO lost 2.98 percent to C$16.92.
 Suncor Energy Inc SU.TO fell with the market, down 0.87
percent to C$34.38, after Canada's biggest oil and gas company
reported a better than expected first-quarter profit.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed 165.65 points, or 1.36 percent, lower at
12,030.86, managing to recover a bit from a near 2 percent fall
earlier in the day that had taken the index close to a two-week
 All of its 10 sectors were down.
 "The market has declined in sync with markets around the
world. It's largely fear-related," said Elvis Picardo, analyst
and strategist at Global Securities in Vancouver.
 Investors were skeptical that European Union officials will
be able to stop Greece's sovereign debt crisis from spreading
to other high-debt euro zone countries, while China's recent
monetary tightening also undermined sentiment.
 Toronto's selloff echoed the wave of worry that gripped
financial markets as investors fretted that the crisis in
Europe could derail global economic recovery. One gauge of
investor fear, the CBOE Volatility Index .VIX, jumped more
than 18 percent.  [ID:nN04122480]
 The index's materials group was a major decliner, falling
1.15 percent as copper tumbled to two-month lows under $7,000 a
tonne on demand fears sparked by the Chinese tightening. Some
gold producers rose, however, moderating the group's losses.
 Miner Teck Resources TCKb.TO slid 3.99 percent to
C$37.25, while Inmet Mining IMN.TO fell 3.83 percent to
C$48.97. On the upside, Barrick Gold ABX.TO rose 1.29 percent
to C$43.90.
 Also on the rise was Cameco Corp CCO.TO, up 1.01 percent
at C$25.03, after the uranium producer reported a 73 percent
jump in profit and said it planned to boost output.
 Loblaw Cos L.TO, Canada's largest supermarket operator,
topped expectations with a 25 percent rise in profit thanks to
its purchase of an ethnic grocery-store chain and the rising
Canadian dollar. Loblaw gained 0.93 percent to C$38.15.
 WestJet Airlines Ltd WJA.TO reported a bigger than
expected 63 percent drop in quarterly profit, sending its
shares lower, but the low-cost Canadian carrier said there are
signs it is on track for a stronger second quarter. WestJet
fell 1.83 percent to C$13.40.
 ($1=$1.02 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)