CANADA STOCKS-TSX resumes steep selloff despite jobs data

Fri Aug 5, 2011 10:57am EDT
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 *TSX down 135.88 points at 12,244.25
 *All 10 index sectors weaker
 *U.S. jobs data stronger than expected
 *Magna plunges 16 percent
 (Updates with details, comments)
 By Claire Sibonney
 TORONTO, Aug 5 (Reuters) - Toronto's main stock index fell
sharply on Friday after a big selloff in the previous session
as positive North American jobs data failed to calm fears that
the world may be heading toward another recession.
 All 10 of the index's sectors were down steeply,
underperforming U.S. indices, which were also negative after an
early rally. [.N]
 Among the three heavyweight groups on the index, energy
shares dropped 2.1 percent, financials fell 0.6 percent, and
materials lost 0.5 percent.
 Suncor Energy (SU.TO: Quote) was one of the most heavily weighted
decliners, down 3.1 percent at C$32.10, taking its cue from
volatile U.S. crude futures. [O/R]
 "You would have thought that we would had a bounce after
yesterday," said John Kinsey, portfolio manager at Caldwell
 Data on Friday showed U.S. job growth accelerated more than
expected in July as private employers stepped up hiring, a
development that might be expacted to ease fears that the U.S.
economy is sliding into recession. [nOAT004847]
 Canadian jobs data showed the country's unemployment rate
fell in July to its lowest level since December 2008.
 "It's market sentiment that has really soured," Kinsey
added. "And it could persist a little further, but at some
stage here we need to have a rally because I think the market
is getting deeply oversold."
 At 10:34 a.m. (1434 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 135.88 points, or
1.1 percent, at 12,244.25.
 The move followed a dramatic 3.4 percent drop on Thursday,
the TSX's biggest one-day loss in two years, as markets
worldwide surrendered to fears about slowing economic growth
and the euro zone's debt crisis.
 Auto-parts maker Magna International (MG.TO: Quote) was the most
heavily weighted decliner on the index, plunging 15.9 percent
to C$37, after posting a lower second-quarter profit, as higher
commodity costs and weak performance at some of its European
operations offset higher sales. [nL3E7J52DB]
 Some gold-mining shares rose as the price of the price of
the precious metal held firm. [GOL/]
 Barrick Gold Corp (ABX.TO: Quote) was up 0.9 percent at C$45.78,
while Goldcorp Inc (G.TO: Quote) added 1.5 percent to C$45.56.
 "You still do have sovereign debt concerns lingering in
Europe and things like that that are probably going to keep
supporting gold for some time, even when we get economic data
in the U.S. better than expected," said Robert Kavcic,
economist at BMO Capital Markets.
 ($1=$0.98 Canadian)
 (With additional reporting by Trish Nixon; editing by Peter