CANADA STOCKS-TSX dives as global worries intensify

Thu Jun 23, 2011 11:02am EDT
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 *TSX down 197.74 points at 12,862.82
 *All 10 index sectors weaker, led by energy
 (Updates with details, commentary)
 By Claire Sibonney
 TORONTO, June 23 (Reuters) - Toronto's main stock market
index fell sharply  on Thursday morning as concerns over the
global economy intensified and prompted investors to head for
the exits.
 Prices for oil, base metals and other commodities fell
following data that showed higher-than-expected U.S. jobless
claims last week, slowing private sector activity in Europe,
and a barely expanding factory sector in China. [O/R] [MET/L]
 The index's three most influential sectors were steeply
lower. Energy stocks skidded 2.4 percent, materials dropped 1.9
percent and financials lost 1.2 percent.
 Among the heaviest decliners, Suncor Energy (SU.TO: Quote) fell
2.4 percent to C$36.64, fellow oil company Canadian Natural
Resources (CNQ.TO: Quote) dropped 3.2 percent to C$37.88, and
Toronto-Dominion Bank (TD.TO: Quote) declined 1.7 percent to C$78.33.
 The sell-off followed a move by the U.S. Federal Reserve on
Wednesday to cut its growth forecast for the world's biggest
economy.  [nN1E75K22F]
 Investors were also watching to see what would happen at a
European Union summit at which leaders will apply more pressure
on Greece to adopt deeply unpopular austerity measures in
return for fresh funds to avert a sovereign default that could
shake the global economy. [nLDE75M0FA]
 The Greek government survived a parliamentary vote of
confidence earlier this week, which was seen as a first step
toward a debt deal.
 "We had the bounce yesterday after (Greece) finally managed
to pass the vote of confidence but all that means is they can
actually go ahead and try and get the austerity measures
through, which may or may not occur," said Gavin Graham,
president of Graham Investment Strategy.
 "When you combine that with the news coming out today on
manufacturing that's not good news."
 At 10:33 a.m. (1433 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 197.74 points, or
1.5 percent at 12,852.82, with all 10 sectors weaker.
 On the upside, TMX Group (X.TO: Quote) rose 2.3 percent to
 TMX was the top advancer on the index after a consortium of
Canadian banks and pension funds raised its hostile takeover
bid for the operator of the Toronto Stock Exchange on Wednesday
with a cash-and-stock proposal that nudged above a friendly
takeover bid from London Stock Exchange, which also sweetened
its offer on Wednesday. [nN1E75L17E]
 Husky Energy Inc (HSE.TO: Quote) was a top decliner, plunging more
 than 5 percent to C$26.68 after Canada's No. 3 integrated oil
company, said on Wednesday it will raise C$1.2 billion ($1.24
billion) through public and private share offerings to finance
its production growth plans. [nN1E75L1ZY]
 ($1=$0.98 Canadian)
 (Reporting by Claire Sibonney; editing by Peter Galloway)