CANADA STOCKS-TSX dragged lower by euro-zone debt fears

Fri May 14, 2010 4:45pm EDT
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   * TSX falls 101.62 points, or 0.84 percent, to 12,014.97
 * Gold shares rise, cushioning index's fall
 * Index up 2.8 percent for the week
 (Updates official closing figures, adds quote)
 By Jennifer Kwan
 TORONTO, May 14 (Reuters) - Toronto's main stock index
capped a roller-coaster week with a sharp drop on Friday as
investors worried that heavy euro zone debt loads could derail
global economic recovery.
 Those worries pulled oil prices below $72 a barrel,
spurring a 1.7 percent fall in the index's energy shares. [O/R]
Suncor Energy (SU.TO: Quote) fell 2.4 percent to C$32.06, while EnCana
Corp (ECA.TO: Quote) dropped 0.8 percent to C$33.09. Canadian Natural
Resources (CNQ.TO: Quote) declined 0.2 percent to C$72.60.
  European authorities announced creation of a massive debt
safety net for Greece, Spain and Portugal this week, but
markets remained skeptical that austerity plans in those
countries will succeed. The doubt helped to knock the euro down
to an 18-month low versus the U.S. dollar. [MKTS/GLOB] [FRX/]
 "There's a lot of concern about the contagion effect from
Europe's debt problems," said Elvis Picardo, analyst and
strategist at Global Securities in Vancouver.
 "The thinking is that global growth is bound to suffer in
this scenario, and that's what is also knocking down oil
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended the session 101.62 points, or 0.84 percent,
lower at 12,014.97, with six of its 10 main sectors dropping.
 The index was up 2.8 percent for the week, with the lion's
share of the gains notched in the first three days.
 The S&P/TSX composite's financial sector fell 1.3 percent.
Royal Bank of Canada (RY.TO: Quote) was down 1.1 percent at C$59.98,
and Toronto-Dominion Bank (TD.TO: Quote) dropped 1.5 percent to
 In addition to European jitters, financials were hurt by
concerns about tighter regulation in the United States, a day
after the U.S. Senate voted to limit fees charged on credit and
debit card transactions. [ID:nN14139295] [ID:nN13100251]
 The index's gold-mining subsector was up 1.8 percent, even
as gold shied away from record highs near $1,250 an ounce on
Friday. [GOL/]
 Barrick Gold (ABX.TO: Quote), the world's No. 1 gold producer,
rose 1.9 percent to C$47.08, and Goldcorp (G.TO: Quote) climbed 1.4
percent to C$47.14. Kinross Gold (K.TO: Quote) was up 1.7 percent at
 ($1=$1.03 Canadian)
 (Reporting by Jennifer Kwan; editing by Peter Galloway)