July 5, 2010 / 2:33 PM / 7 years ago

CANADA STOCKS-TSX drops on global growth concerns

3 Min Read

*TSX down 82.41 points at 11,113.65

*All 10 sectors lower

(Updates with details, quotes)

By Claire Sibonney

TORONTO, July 5 (Reuters) - Toronto's main stock index dropped on Monday to its lowest in nearly five months as energy, materials and financial issues receded on concerns about global economic growth.

The broad-based decline came on thin trading on a day when U.S. markets were closed for the Independence Day holiday.

Among the biggest decliners, Suncor Energy (SU.TO) lost 0.9 percent to C$30.84, Royal Bank of Canada (RY.TO) fell 0.9 percent to C$50.45 and Teck Resources TCKb.TO knocked off 2.2 percent to C$30.93.

World stock prices also fell for the fourth day running on growing concerns of slowdowns in the United States and China -- the two main pillars of global growth. [MKTS/GLOB]

"People are obviously concerned about the chatter of a possible double-dip recession," said Bruce Latimer, a trader at Dundee Securities.

"Whether that comes to be we'll have to wait and see."

Data showing the U.S. labor market shrank for the first time this year in June, slower Chinese manufacturing activity and euro zone austerity measures have fueled concerns over prospects for the global economy.

Latimer cautioned that trading was extremely thin given the July 4 long weekend and Canadian traders lacked real direction.

"No one is really expecting any fireworks today. I'd really find it difficult to read much into today's market activity."

Commodity prices were also mixed as U.S. crude oil slipped below $72 a barrel, while gold eased and copper bounced higher. [O/R] [GOL/] [MET/L]

At 10:14 a.m. (1414 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 82.41 points, or 0.74 percent, at 11,113.65, its weakest since Feb. 8.

All of index's 10 main groups were down.

In other company news, Sino Forest Corp TRE.TO rose almost 1 percent to C$15.25 after the the forest plantation operator said that one of its units has entered into a financing agreement for up to 10 billion RMB ($1.5 billion) with China Development Bank Corp for projects in China. [ID:nSGE6610KA] (Reporting by Claire Sibonney; Editing by Frank McGurty)

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