CANADA STOCKS-TSX tumbles on financials, commodities

Mon Nov 17, 2008 5:05pm EST
 
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* TSX slumps for second straight session

* Financials lead index lower, down 3.8 percent

* Petro-Canada slumps after delays project decision (Adds closing numbers, quotes, details)

By Jennifer Kwan

TORONTO, Nov 17 (Reuters) - The Toronto Stock Exchange's main index sank nearly 3 percent on Monday as financial services and commodity-related issues were pulled down by gloomy sentiment from a faltering world economy.

The influential financial services sector dropped 3.8 percent as investor sentiment soured on news that Japan's economy had joined Europe's by slipping into recession, and as the weekend's meeting of the G20 countries produced few concrete stimulus steps.

U.S.-based financial major Citigroup (C.N: Quote) added to the gloom by announcing plans to cut 52,000 jobs. [ID:nSP354083]

"There's more to come. We haven't reached the bottom in terms of the bad news," said Stephen Carlin, vice-president of Canadian equities at KBSH Capital Management in Toronto.

Heavily weighted issues that helped drag the TSX lower included Manulife Financial (MFC.TO: Quote), down 8.8 percent at C$21.06, Royal Bank of Canada (RY.TO: Quote), off 2.6 percent at C$43.36, and Toronto-Dominion Bank (TD.TO: Quote), down 3.4 percent at C$51.75.   Continued...