CANADA STOCKS-TSX tumbles as China rate worries hit resources

Fri Nov 12, 2010 5:37pm EST
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   * TSX down 185.50 points , or 1.43 pct, at 12,749.24
 * All 10 of the TSX's main groups end lower
 * Suncor down 3 pct, Barrick down 1.6 pct
 * TSX index down 1.35 pct on the week
 (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
 "(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 on 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]
 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.
 Crude prices fell more than 3 percent as China worries
triggered profit-taking following gains of nearly 8 percent in
the last two weeks. Gold prices took their biggest hit in four
months, sliding 3 percent. [O/R][GOL/]
 "There's been a number of headwinds for commodities over
the past few days ... it's really the sore spot of the market
right now," said Jean-Francois Dion, vice-president and
portfolio adviser of Canadian Equities at RBC Dominion
 Concerns over sovereign debt in the euro zone also gave
investors some pause.
 "In general, you're just seeing risk aversion from Europe
and China," Zohny said, noting some profit-taking following
strong rallies by a number of stocks over the last few weeks.
 The financial group, another index powerhouse, was down
1.17 percent with all the major banks firmly in the red. Royal
Bank of Canada RY.TO fell 1.27 percent to C$53.02 and the
Bank of Nova Scotia BNS.TO slipped 1.3 percent to C$53.15.
 "Earnings season is winding down, so the focus is very much
at the macro level right now. We'll be looking for any signs of
policy changes from China over the weekend or over the next few
days," said Dion.
 ($1=$1.01 Canadian)
 (Reporting by Solarina Ho; editing by Rob Wilson)