CANADA STOCKS-TSX dives, led by energy; global worries intensify

Thu Jun 23, 2011 11:50am EDT
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 * Composite index down 180.23 points at 12,880.33
 * Nine of 10 index sectors weaker, led by energy
 * TMX Group offsets index losses after bids sweetened
 (Adds energy sector details. Updates stocks prices.)
 By Claire Sibonney
 TORONTO, June 23 (Reuters) - Toronto's main stock market
index fell more than 1 percent on Thursday as rising concerns
over the global economy and a sharp fall in oil prices prompted
investors to head for the exits.
 Commodity prices .CRB were down more than 2.6 percent
following data that showed higher-than-expected U.S. jobless
claims, slowing private sector activity in Europe, and a barely
expanding factory sector in China.
 Oil prices dropped after the United States and
International Energy Agency said they would release 60 million
barrels of oil from strategic stockpiles to help the global
economy. [O/R]
 Canadian energy shares, down 2.5 percent, played the
biggest role in leading the market lower. Suncor Energy
SU.TO, which fell 2.8 percent to C$36.48, and Canadian
Natural Resources CNQ.TO, off 2.9 percent to C$38, were among
the heaviest decliners.
 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. [ID: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 11:36 a.m. (1536 GMT) the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 180.23 points, or
1.38 percent, at 12,880.33, with nine of 10 sectors weaker.
 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]
 Husky Energy Inc HSE.TO, Canada's No. 3 integrated oil
company, was another major decliner, falling more than 5
percent to C$26.67. It said on Wednesday it will raise C$1.2
billion ($1.24 billion) through public and private share
offerings. [ID:nN1E75L1ZY]
 Toronto Stock Exchange operator TMX Group X.TO, up 2.3
percent to C$45.26, was one of the few stocks helping to offset
the index's losses.
 TMX rose 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. [nN1E75L17E]
 ($1=$0.98 Canadian)
 (With additional writing by Jeffrey Hodgson; editing by Peter