CANADA STOCKS-TSX tumbles for second straight session

Tue Jul 7, 2009 4:34pm EDT
 
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* TSX falls 1.83 percent to 9,844.35

* Second straight triple-digit decline

* Energy sector off 1.22 percent, gold offsets (Updates with closing numbers, commentary)

By Ka Yan Ng

TORONTO, July 7 (Reuters) - Toronto's main stock index closed sharply lower for a second consecutive session on Tuesday as worries about the global economy spurred risk aversion, pulling down weighty energy and bank shares.

Early dealings were choppy with steady commodity prices, which initially supported the resource-heavy Toronto market. But, as the session wore on, the price of oil turned negative and economic concerns weighed on investor sentiment, pulling the TSX down more than 1 percent.

The price of oil settled below $63 a barrel as investors sought safer havens, which contributed to the weakening energy group, down 1.22 percent. [ID:nSP379393] Canadian Natural Resources (CNQ.TO: Quote) dropped 1.72 percent to C$54.94.

Nagging concerns about the state of the U.S. economy, triggered by last week's gloomy jobs report, continued to reverberate through the market.

"I think it caused people to take some chips off the table. Now it seems to have accelerated," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.   Continued...