CANADA STOCKS-TSX takes 2nd big hit in two days as oil falls

Tue Jul 7, 2009 5:14pm 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, but golds rise (Adds details, commentary)

By Ka Yan Ng

TORONTO, July 7 (Reuters) - Toronto's main stock index closed sharply lower for a second straight session on Tuesday as worries about the global economy kept the market averse to risk and pulled down heavyweight energy and bank shares.

The price of oil settled below $63 a barrel as investors sought safer havens, and that hit the TSX index's energy group, which fell 1.22 percent. [ID:nSP379393] In the group, Canadian Natural Resources CNQ.TO 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 for June, continued to reverberate through the market with few corporate stories strong enough to buck the trend.

"I think (the U.S. jobs data) 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.

"It seems like it's less to do with companies and more to do with what's going on in the economy. Stocks are sort of held hostage to this economic news. What takes precedence is people's feeling towards the economy," he added.   Continued...