CANADA STOCKS-TSX sinks on resources, economy worries

Wed Nov 12, 2008 11:20am EST
 
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* Oil falls below $58, drags down energy sector

* Teck Cominco down 16 pct, extends Tuesday's decline

* Canadian economy "sluggish" through H1/2009, BoC says

TORONTO, Nov 12 (Reuters) - The Toronto Stock Exchange's main index .GSPTSE fell 3.8 percent on Wednesday morning after prices of oil and metals dropped, pulling down energy and material shares.

The index's energy sector fell 2.6 percent as oil slipped to $58 a barrel on expectations of weaker demand as global stock markets headed lower. [ID:nSP373294]

"The trend keeps on going down lower. That's bad, especially for oil sands and the new projects that are being built. Some of the projects are going to be delayed or cut back," said Sal Masionis, a stockbroker at Brant Securities.

Among energy shares, heavily weighted EnCana Corp (ECA.TO: Quote) fell 3.4 percent to C$55, while Suncor (SU.TO: Quote) was off 4.2 percent at C$25.44.

Shortly after 10:40 a.m. (1540 GMT), the S&P/TSX composite index .GSPTSE was down 360.30 points, or 3.8 percent, at 9,063.70. All 10 main groups were lower.

Materials were dragged 5.7 percent lower as gold, copper and aluminum prices softened as worries about demand persist in a world economy that is in an economic downturn.   Continued...