CANADA STOCKS-TSX tumbles on fears of global slowdown

Fri Jun 10, 2011 5:04pm EDT
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   * TSX ends down 171.74 points, or 1.3 pct, at 13,084.00
 * Hits lowest in more than 6 months, all 10 sectors weaker
 * TSX finishes week down 3.2 percent
 (Adds details, technical levels, commentary)
 By Claire Sibonney
 TORONTO, June 10 (Reuters) - Toronto's main stock index
closed sharply lower on Friday after hitting its lowest level
in more than six months, as risk aversion swept over markets
due to concerns about a global economic slowdown and Europe's
struggle with Greece's debt crisis.
 Commodity prices were hit by a confluence of factors,
including a stronger safe-haven U.S. dollar, which weighed
heavily on Canada's resource-driven index.
 The energy sector played the biggest role in leading the
market lower, falling nearly 2 percent as U.S. crude prices
fell sharply on news that Saudi Arabia was offering more oil to
Asian customers, with additional pressure from a stronger U.S.
dollar. [O/R]
 Suncor Energy SU.TO, the most influential decliner,
dropped 1.9 percent to C$38.07, while Canadian Natural
Resources CNQ.TO sank 2.7 percent to C$39.34.
 Materials, home to mining stocks, were down 1.5 percent,
dragged lower by softer metal prices. Copper fell after
disappointing trade data from China, while gold succumbed to
the greenback's rally amid renewed Greek debt fears. [MET/L]
 Teck Resources TCKb.TO plunged 4.2 percent to C$45.51,
while Barrick Gold Corp ABX.TO shed 1.5 percent to C$42.62.
 "If you look at silver and gold, they've been coming down
hard, and this is the area where a lot of investors had put
their money, so a lot of stop losses are being triggered," said
Azim Hajee, a senior market strategist at commodity futures
brokerage Lind-Waldock Canada.
 He said investors were disappointed the market was not able
to keep up with Thursday's gains following a seven-session
losing streak.
 "Generally what you're seeing is summer doldrums. People
are taking profit and standing on the sidelines, plus they feel
that the TSX ... is due for a correction."
  The Toronto Stock Exchange's S&P/TSX composite .GSPTSE
ended down 171.74 points, or 1.3 percent, at 13,084.00.
Earlier, the index fell as low as 13,008.75, its weakest level
since Dec. 1.
 All 10 of the main sectors were weaker, including
financials, down 1 percent. The TSX was down 3.2 percent for
the week and has fallen 9 percent since the 2011 high reached
in March. It is off almost 3 percent year-to-date.
 The index fell back below the 200-day moving average on
Friday, a bearish sign for many investors.
 Fergal Smith, managing market strategist at Action
Economics, said the next major technical support will be found
at the psychological level of 13,000. Beyond that, he expects
support around 12,700, which marks a 50 percent retracement of
the July to March rally.
 Global economic concerns overshadowed data showing solid
domestic job growth that initially helped firm the Canadian
dollar. [ID:nN10228750]
 Investors received mixed messages about the progress of
debt assistance to Greece, with Germany sticking to its demand
that private investors contribute to a second bailout even
after renewed ECB opposition to any investor participation that
might be deemed involuntary. [ID:nLDE7590LU] [ID:nLDE7581Z8]
 "There is a growing anxiety about the impasse facing Greece
and there's little clarity on how that will resolve itself
before the end of June," said Smith.
 "That combined with slower growth at the end of the (U.S.
Federal Reserve) stimulus have encouraged reduction in risk."
 Sino-Forest TRE.TO skidded 13 percent to C$4.47 following
a two-day rally. Allegations of fraud against the China-focused
forestry company have set off a battle royal between analysts
who have long supported Sino-Forest and the short-seller whose
recent accusations have pummeled its shares. [ID:nN09280131]
 Research In Motion RIM.TO fell 2.3 percent to C$35.82 as
one the BlackBerry maker's investors pushed for a shareholder
vote on whether Mike Lazaridis and Jim Balsillie should retain
shared roles as chairmen of the board and chief executives.
 ($1=$0.98 Canadian)