CANADA STOCKS-TSX slides on nagging recession fears

Fri Aug 19, 2011 5:09pm EDT
 
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 * TSX ends down 179.24 points, or 1.5 pct, at 12,007.47
 * Banks, energy down sharply, gold miners rally
 *TSX ends week 4.3 percent lower
 (Updates to close, adds details, quotes)
 By Claire Sibonney
 TORONTO, Aug 19 (Reuters) -  Toronto's main stock index
dropped sharply for a second day on Friday as financial and
energy issues were hit by fears of a new U.S. recession and by
a Bank of Canada warning on risks to the global economy.
 The index reversed an earlier rally on the back of
safe-haven golds, as U.S. markets also slipped further into the
red after Hewlett-Packard's (HPQ.N: Quote) weaker outlook and
corporate shakeup added to investor uncertainty. [.N]
 Banks were the heaviest decliners on the TSX, down more
than 3 percent. Toronto-Dominion Bank (TD.TO: Quote) tumbled nearly 4
percent to C$71.10, Bank of Nova Scotia (BNS.TO: Quote) sank 4.3
percent to C$50.25, and Royal Bank of Canada (RY.TO: Quote) lost 3
percent to C$48.97.
 Ron Meisels, a technical analyst and president of Phases &
Cycles in Montreal said some financials were showing "serious
negative signals," after tumbling to near Aug. 8 lows, a day
characterized by panic selling spurred by the United States'
loss of its triple-A credit rating.
 "Given that we expect better days next week or so I would
suggest taking that strength to sell into rallies the weak
stocks and at the same time accumulate the gold and silver
stocks because they might have a correction," added Meisels.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended down 179.24 points, or 1.47 percent, at
12,007.47, with eight of its 10 main sectors lower. On the
week, the market sagged 4.3 percent.
 Energy shares were also down sharply, sliding 2 percent,
with Canadian Natural Resources (CNQ.TO: Quote) off 2.4 percent at
C$33.10.
 "The market is clinging now to the hope that the (U.S.
Federal Reserve) would engage in additional policy steps with
(it) looking at Fed Chairman (Ben) Bernanke's speech at Jackson
Hole next week," said Fergal Smith, managing market strategist
at Action Economics.
 Gold miners were among the day's bright spots, gaining 2.2
percent as the price of bullion hit a record high of $1,877 an
ounce. [GOL/]
 Goldcorp (G.TO: Quote) was the top heavyweight gainer, up 3.5
percent at C$51.81, while Barrick Gold (ABX.TO: Quote) advanced 2.1
percent to C$50.32.
 The flight-to-safety bid was further bolstered by closely
watched testimony from Bank of Canada Governor Mark Carney and
Finance Minister Jim Flaherty, who both highlighted the risks
posed by Europe's stubborn debt crisis and the slow U.S.
recovery from recession. [ID:nN1E77I0L1]
 ($1=$0.99 Canadian)