CANADA STOCKS-Resources, banks lead TSX in steep decline

Mon Jun 6, 2011 5:06pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * TSX down 199.25 points, or 1.47 pct, at 13,318.66
 * Nine of 10 main groups finish lower
 * Oils fall 2.14 pct, banks sag 1.2 pct
 * Index now down nearly 1 pct since start of year
 (Updates with details, comments)
 By Solarina Ho
 TORONTO, June 6 (Reuters) - Toronto's main stock index fell
for a fifth straight session on Monday, finishing nearly 1.5
percent lower as cooling oil prices and signs of a slowing U.S.
economy continued to dampen sentiment.
 Energy stocks tumbled 2.14 percent, with Suncor Energy
(SU.TO: Quote) off 2.15 percent at C$38.75. It was the biggest drag on
the TSX. Canadian Natural Resources (CNQ.TO: Quote) was not far
behind, giving back 2.6 percent to C$39.69.
 Toronto-Dominion Bank (TD.TO: Quote) slid 1.81 percent to C$80.21
while Royal Bank of Canada (RY.TO: Quote) skidded 1.45 percent to
C$54.43, pulling the economically sensitive financial group
down 1.2 percent.
 The materials group reversed earlier gains to finish 1.78
percent lower. Potash Corp (POT.TO: Quote) gave back 1.89 percent to
finish at C$52.93, while diversified miner Teck Resources
TCKb.TO slumped 3.64 percent to C$49.71.
 The three groups combine to make up roughly 80 percent of
the index's weight.
 "Overall economic issues both in the U.S. as well as
overseas are probably the biggest drivers of (the decline),"
said Brian Pow, vice-president, research and equity analyst at
Acumen Capital Partners in Calgary.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE finished down 199.25 points, or 1.47 percent, at
 Telecoms was the lone gainer, rising 0.11 percent.
 The index saw its biggest one-day slide since August last
Wednesday and has fallen just under 1 percent since the start
of the year.
 "We're also coming into the summer doldrums -- they're not
too far away. Volumes are starting to get lighter and I think
most managers are trying to lock in whatever profits they've
got," said Pow.
 "Ultimately, people need to stand back and say, 'Geez we've
had an awfully strong move over the last six to eight months',
so it's not unrealistic to expect some consolidation."
 Last Friday, dismal U.S. jobs data rekindled worries about
an economic slowdown in the United States, and dragged oil
prices lower on increased fears of weaker demand. [O/R]
 Sino-Forest Corp TRE.TO, which accused short-seller Muddy
Waters of defamation for alleging it fraudulently exaggerated
its Chinese forestry assets, rebounded somewhat from its more
than 60 percent dive last week. It ended 16.63 percent higher
at C$6.10. [ID:nN06249068]
 ($1=$0.98 Canadian)
 (Editing by Rob Wilson)