CANADA STOCKS-TSX dives as Goldman charge slams market

Fri Apr 16, 2010 5:35pm EDT
 
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* TSX falls 1.15 percent to 12,070.66

* Energy, financials, materials big decliners

* SEC charges Goldman Sachs with fraud (Updates to close)

By Ka Yan Ng and Claire Sibonney

TORONTO, April 16 (Reuters) - Toronto's main stock index slid more than 1 percent on Friday to close at its lowest level in more than two weeks as financial and resource issues were knocked lower by news that Goldman Sachs has been charged with fraud by the U.S. securities regulator.

Canadian equities, commodities and the currency were all deflated as investors ran for safety after the Securities and Exchange Commission alleged fraud in the investment bank's structuring and marketing of a debt product tied to subprime mortgages, which cost investors more than $1 billion. [ID:nN16131161]

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE, which is tilted heavily with financial and commodity-related shares, ended down 140.86 points, or 1.15 percent, at 12,070.66, after hitting a one-week low earlier in the session following the Goldman news.

It closed at its lowest level since March 31 and was down 0.87 percent on the week, breaking a four-week streak of advances.

"The biggest factor that caused the market to turn was Goldman Sachs. That's cast a pall on the financials sector," said Michael Sprung, president of Sprung & Co Investment Counsel.   Continued...