CANADA STOCKS-Banks, resources combine to pull TSX lower

Fri Jan 15, 2010 4:44pm EST
 
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* TSX falls 1.01 percent to 11,685.37

* Miners, banks, oils all march lower (Adds details)

By Ka Yan Ng

TORONTO, Jan 15 (Reuters) - Toronto's main stock index took a broad hit on Friday, falling more than 1 percent as weakness in energy, materials and banking groups combined to wipe out the last vestiges of the gains the index made as the new year dawned.

Commodity prices fell and bank shares were hit by concerns over a bank fee proposed by U.S. President Barack Obama, as well as by disappointing results from JPMorgan Chase & Co (JPM.N: Quote).

JPMorgan reported deep fourth-quarter loan losses that raised concerns about earnings for the broader U.S. bank sector. [ID:nN15183524]

Royal Bank of Canada (RY.TO: Quote) lost 1.7 percent to C$54.81 to lead all heavyweight decliners, while Toronto-Dominion Bank (TD.TO: Quote) wasn't far behind with a 1.54 percent decline to C$63.35.

Corporate results over the next several weeks will likely drive the direction of equity markets. JP Morgan's results, along with falling commodity prices, overshadowed better-than-expected numbers from chipmaker Intel.

"We were lower right from the get-go because there were a couple of factors that offset the news from Intel," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.   Continued...