CANADA STOCKS-TSX retreats as rising greenback hits energy

Tue Nov 16, 2010 5:17pm EST
 
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 * TSX ends down 133.18 points at 12,602.23
 * Main index touches 5-week low during session
 * Strong U.S. dollar drags down oil, metals prices
 * Materials, energy groups lead retreat
 * Nine of 10 main sectors lower
 (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Nov 16 (Reuters) - Toronto's main stock index fell
to its lowest in five weeks on Tuesday before recovering some
ground as global economic woes boosted the U.S. dollar,
weighing on commodity prices and the hefty resource sectors.
 A strong U.S. dollar, lifted in part by concerns about
sovereign debt problems in Ireland and other European
economies, helped drag oil prices down more than 3 percent to
below $83 a barrel as investors cut their exposure to
commodities. [O/R]
 Canadian Natural Resources (CNQ.TO: Quote) fell 2.2 percent to
C$38.70, while Suncor Energy (SU.TO: Quote) retreated 2.2 percent at
C$33.67. TransCanada Corp (TRP.TO: Quote) sank 2.6 percent to
C$36.00.
 The three big energy companies were the most influential
movers on the downside. The broader energy group was down 1.8
percent.
 "The market has become somewhat jittery that what happened
to Greece might happen to Ireland, too. The market is basically
telling us we don't like these uncertainties," said Sid
Mokhtari, director of institutional equity research at CIBC
World Markets in Toronto.
 In May, Greece agreed to implement economic policy changes
in exchange in emergency funding to avoid default.
[ID:nLDE69B1I0]
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE finished the day down 133.18 points, or 1.05 percent,
at 12,602.23. Nine of the index's 10 main groups were lower,
with telecoms the lone sector in the black. It was up 0.5
percent.
 The main index slid to a low of 12,501.82, its weakest
since mid-October and near its 50-day moving average, a key
technical level that, if breached, could signal further losses,
said Mokhtari.
 "From a technical perspective the level of overbought
conditions of the market was at elevated readings. We were
overbought," he said.
 In addition to the worries about euro zone debt, investor
sentiment soured on worries that China might further tighten
monetary policy to control inflation, a move that could hurt
the global economic recovery. [ID:nL3E6MG081] [MKTS/GLOB]
 In the United States, core producer prices recorded their
largest drop in more than four years in October and industrial
output was little changed. The PPI reading underscored concerns
at the Federal Reserve that low inflation could spiral into a
damaging bout of deflation, analysts said. [ID:nN16103144]
Telecommunications stocks rose, with BCE Inc (BCE.TO: Quote) up 0.8
percent to C$33.34, and Telus Corp (T.TO: Quote) up 1.5 percent at
C$45.74.
 The blue chip S&P/TSX 60 index  closed 7.10 points
lower, or 0.97 percent, at 723.14.
 The materials group, home to mining and fertilizer
companies, was down 1.6 percent. Cameco Corp (CCO.TO: Quote), slumped
4.5 percent to C$34.30, while Teck Resources (TCKb.TO: Quote) was off
2.4 percent at C$48.16. NovaGold Resources Inc (NG.TO: Quote) tumbled
3.6 percent to C$13.76.
 Copper prices skidded 5 percent on euro zone jitters and
China tightening fears, while gold tumbled on a rallying
greenback. [MET/L]  [GOL/]
 In company news, Nexen Inc NXY.TO sank 3.7 percent to
C$21.55 after it said output at its C$6.1 billion Long Lake oil
sands project will remain below its design rate through 2011 as
the company works the bugs out of the project. [ID:nN16114618]
 ($1=$1.02 Canadian)
 (Editing by Frank McGurty)