CANADA STOCKS-TSX drops broadly on Europe fears

Fri May 7, 2010 4:47pm EDT
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 * TSX falls 150 points, or 1.27 pct, at 11,692.43.
 * Investors fearful after Thursday plunge
 * Euro zone contagion fears still weigh
 * Index falls five straight days, down 4.2 pct on week
 By Cameron French
 TORONTO, May 7 (Reuters) - Canadian stocks fell hard on
Friday, as investors fearing a widening Greek debt crisis and
shaken by Thursday's stock plunge sold shares across all
industry groups, pulling the TSX index negative for the year.
 With mystery still surrounding the magnitude of the
previous session's 3.8 percent intraday drop, market players
rushed to lighten equity holdings.
 "We're still in the aftershocks of yesterday's spectacular
plunge," said Rick Hutcheon, president and chief operating
officer at RKH Investments.
 "Yesterday would shake people's confidence. ... Greece and
the whole European mess doesn't seem to be resolved. There's a
lot of uncertainty and managers' normal reaction to uncertainty
is to sell, take money off the table."
 Resource stocks led the way as oil prices extended a
week-long slide on concerns that Greece's debt woes will infect
other euro zone countries and jeopardize the global economic
 The energy sector dropped 1.2 percent, pulled down by
Suncor Energy SU.TO, which dropped 1.4 percent to C$31.92,
and EnCana Corp ECA.TO, which retreated 1.1 percent to
 Mining stocks fell 1.9 percent despite a late rally in
copper prices and strong gold prices, underscoring the market's
unease with equities. Barrick Gold ABX.TO, eased 3.1 percent
to C$44.70, pulling back from a five-month high, while FNX
Mining FNX.TO retreated 3.9 percent to C$11.15.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE fell 150.00 points, or 1.27 percent, 11,692.43.
 For the week, it dropped 4.2 percent, losing ground in each
session and falling below its Dec. 31, 2009 levels for the
first time since March.
 Euro zone contagion fears more than offset a report that
showed a record number of Canadians returned to work in April,
adding pressure on the Bank of Canada to raise interest rates
in June, ahead of other major industrialized countries.
 The market's sharp intraday drop in the previous session --
from which the index recouped nearly all the losses to close
down 0.28 percent on Thursday -- prompted regulators to cancel
or re-price about 220 trades that took place at the bottom off
the plunge.
  ($1=$1.04 Canadian)
 (Reporting by Cameron French; Editing by Frank McGurty)