CORRECTED - CANADA STOCKS-TSX drops as financials, technology weigh

Thu Nov 13, 2008 12:23pm EST
 
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(Corrects figure in first paragraph to $700 billion from $700 million)

*Financials drop on uncertainty over U.S. bailout fund

*Loblaw rises sharply after quarterly results

*CP sags after says to cut 2009 capital investment (Adds details, updates figures)

TORONTO, Nov 13 (Reuters) - Toronto Stock Exchange's main index was lower late on Thursday morning on weakness in the information technology and financial sectors, with financials hit by uncertainty after Washington backed away from using the $700 billion bailout fund to buy up toxic mortgages.

Among heavily weighted stocks that pushed the market lower was Research In Motion RIM.TO, down 7.8 percent at C$49.40. Earlier, brokerages Raymond James and UBS cut their share-price targets on the company. The information technology sector was down 2.5 percent.

Manulife Financial (MFC.TO: Quote) was also a major drag on the index, down by 4.7 percent at C$22.26, helping to push the overall financial sector down by 2.1 percent.

"It's just the uncertainty that the (U.S.) government has decided to pursue one policy for a period of the time and changes their opinion on the wisdom of that policy and does an about face and decides to do something different," said Peter Chandler, senior vice-president at Canaccord Capital in Waterloo, Ontario.

U.S. Treasury Secretary Henry Paulson said on Wednesday he plans to focus on buying stakes in financial institutions and shoring up consumer credit markets, and is scrapping plans to buy up mortgages. [ID:nN12393760]   Continued...