November 12, 2010 / 10:20 PM / 7 years ago

CANADA STOCKS-TSX tumbles as China rate worries hit resources

2 Min Read

   * TSX down 185.50 points , or 1.43 pct, at 12,749.24
 * All 10 of the TSX's main groups end lower  (Updates, adds quotes)
 By Solarina Ho
 TORONTO, Nov 12 (Reuters) - Toronto's main stock index sank on Friday as inflation worries in China drove expectations of an interest-rate hike, dragging down commodity prices and the resource-heavy TSX.
 Oil heavyweight Suncor Energy (SU.TO) fell 3.13 percent, to C$34.93 while miner Barrick Gold (ABX.TO) was down 1.57 percent at C$51.25.
 "The market is looking at action in China yesterday. The Chinese index was down about 5 percent," said Youssef Zohny, an associate portfolio manager with Van Arbor Asset Management in Vancouver.
 "(Inflation) came in much hotter than expected, so it seems like there's going to be some tightening in China. That's essentially what's driving the market today."
 The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE finished down 185.50 points, or 1.43 percent, at 12,749.24. All 10 of its main groups finished in the red.
 The index retreated 1.35 percent for the week.
 The materials sector, home to major miners, was down 1.9 percent, with Goldcorp (G.TO) off 1.22 percent at C$46.85. Base-metals miner Teck Resources TCKb.TO was down 1.47 percent at C$49.61. [MET/L]
 Crude prices fell more than 3 percent on Friday as China worries triggered profit-taking following gains of nearly 8 percent in the last two weeks.
 Energy stocks gave back 1.75 percent. Canadian Natural Resources (CNQ.TO) fell nearly 2 percent to C$39.76, while Encana Corp (ECA.TO) slid 2.26 percent to C$29.42.
 ($1=$1.01 Canadian)  (Reporting by Solarina Ho; editing by Rob Wilson)                                        

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