CANADA STOCKS-Doubts about economic recovery rattle TSX

Mon Aug 17, 2009 10:45am EDT
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 * TSX down 339.98 points, or 3.13 percent, at 10,508.03
 * Slide in commodity prices hits index
 * Financials drop 3 percent on recovery doubt
 (Adds details, quote)
 TORONTO, Aug 17 (Reuters) - Toronto's main stock market
index dove on Monday morning as commodity-linked stocks sank
with oil and metals prices on worries over the pace of economic
 Energy, financial, and gold-mining companies led the broad
decline as commodity prices slid on worries about the health of
of the U.S. consumer that were underlined by below-par results
from U.S. home improvement retailer, Lowe's Cos Inc LOW.N.
 Also disconcerting the market was data that showed Japan's
economy emerged from its longest recession in at least 60 years
in the second quarter, but that the recovery may be shaky.
 Suncor Energy SU.TO sank 4.6 percent to C$34.19, while
Canadian Natural Resources CNQ.TO tumbled 3.2 percent to
C$62.16. Gold miner Barrick Gold ABX.TO fell 3.9 percent to
C$35.95, while Goldcorp G.TO dropped 3.8 percent to C$37.52.
 Canada's biggest bank, Royal Bank of Canada RY.TO, fell
2.5 percent to C$50.10.
 The stock market tumble reflects persistent concerns about
the "global growth story," said Francis Campeau, broker at MF
Global Canada, in Montreal.
 "That's why the commodity sectors are getting hit," he
 Oil prices CLc1 fell below $66 a barrel and metals prices
dropped sharply on Monday. [ID:nSYD485910]
 At 10:11 a.m. (1411 GMT), the Toronto Stock Exchange
S&P/TSX composite index .GSPTSE was down 339.98 points, or
3.13 percent, at 10,508.03, with all of its 10 main groups
 Last week, the Toronto index notched its first weekly loss
in five weeks, due in part to sluggish U.S. consumer confidence
numbers that rattled investor confidence.
 Analysts said the market is also taking a breather after
racing up some 40 percent from its March lows. "There could be
room for further drop in the short term," Campeau said.
 ($1=$1.11 Canadian)
 (Reporting by Jennifer Kwan; editing by Peter Galloway)