CANADA STOCKS-TSX slumps with banks and miners

Fri Apr 15, 2011 4:59pm EDT
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* TSX falls 22.68 points to 13,799.12

* 5 of 10 main sectors sag, financials and materials weigh (Updates with details, commentary)

By John McCrank

TORONTO, April 15 (Reuters) - Toronto's main stock index ended lower on Friday as concerns over U.S. bank earnings hit financial stocks and rising global inflation rates hit miners.

Toronto-Dominion Bank (TD.TO: Quote) was down 0.85 percent at C$82.09, Canadian Imperial Bank of Commerce (CM.TO: Quote) fell 1.4 percent to C$82.50 and National Bank of Canada (NA.TO: Quote) slid 0.91 percent to C$76.30.

The heavily weighted financial sector slumped 0.62 percent after Bank of America reported a sharp drop in first-quarter profit on Friday due to higher expenses at its mortgage business. [ID:nN15213078]

That followed JPMorgan Chase & Co's results on Wednesday, which showed shrinking outstanding loans for the fourth consecutive quarter, raising questions about future profits in the U.S. banking industry. [ID:nN13262333]

"The reaction has been definitely less than stellar, so I think we're just kind of getting dragged down with some of the American results," said Levente Mady, market strategist at Union Securities in Vancouver.

The materials sector, home to miners, fell 0.55 percent as mounting inflation pressures in China caused doubts to be cast on the demand outlook for commodities. Higher inflation in Europe also added to the concerns.   Continued...