CANADA STOCKS-TSX drops as economic worry hits resources

Tue Mar 9, 2010 4:35pm EST
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 * TSX drops 45.13 points, or 0.38 percent, to 11,918.71
 * Energy, materials shares lead TSX lower
 * Scotiabank falls 1.4 pct despite profit rise
 (Updates to close, adds quote)
 By Jennifer Kwan
 TORONTO, March 9 (Reuters) - Toronto's main stock market
index fell for a second straight session on Tuesday as weaker
oil and gold prices pulled resource shares lower, while most
bank stocks also dropped.
 The index's materials sector, home to mining and fertilizer
shares, dropped 0.8 percent as bullion and metals prices
slipped on rising risk aversion fueled by sovereign debt
worries. [GOL/] The oil and gas group fell 0.6 percent as oil
prices dropped on concerns about economic recovery that also
sparked buying of the safe-haven U.S. dollar. [O/R]
 Barrick Gold (ABX.TO: Quote) fell 0.7 percent to C$40.54, and Teck
Resources TCKb.TO dropped 1.3 percent to C$41.04. Potash Corp
of Saskatchewan (POT.TO: Quote) fell 0.8 percent to C$120.36. Suncor
Energy (SU.TO: Quote) slid 2 percent to C$31.39.
 Also weighing on the Toronto index was the heavyweight
financial sector, down 0.5 percent, with Royal Bank of Canada
(RY.TO: Quote) falling 1.1 percent to C$57.96.
 Bank of Nova Scotia (BNS.TO: Quote) slipped 1.4 percent to C$49.42
even after it beat market expectations by reporting a profit
rise of 17 percent in the first quarter as domestic banking
earnings surged and loan losses were lower than anticipated.
 "I'd say the weakness we're seeing today could possibly be
on account of some profit-taking in the financial group,
specifically bank stocks, which have been tremendous performers
in recent weeks," said Elvis Picardo, analyst and strategist at
Global Securities in Vancouver
 The S&P/TSX composite index .GSPTSE finished the day down
45.13 points, or 0.38 percent, at 11,918.71, with seven of its
10 main groups lower.
 The index briefly popped into positive territory at midday
as oil and gold prices steadied, recovering some early losses
in the heavyweight resource sectors. [O/R] [GOL/]
 But losses accelerated again in the afternoon as
nervousness about the economic outlook drew investors toward
safer-haven instruments. [FRX/]
 ($1=$1.03 Canadian)
 (Reporting by Jennifer Kwan; editing by Peter Galloway)