CANADA STOCKS-TSX slides on Greece deficit warning

Mon Oct 3, 2011 10:37am EDT
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 * TSX down 142.27 points, 1.2 pct, at 11,481.88
 * Nine of 10 sectors weaker, golds up
 (Updates with details, commentary)
 By Claire Sibonney
 TORONTO, Oct 3 (Reuters) - Toronto's main stock market
index tumbled on Monday after an admission from Greece that it
will miss deficit targets sparked a sell-off in global equities
and commodities, though rallying gold-mining shares helped
cushion the fall.
 Despite harsh new austerity measures, Greece's draft budget
brought the specter of a default closer and will weigh as euro
zone finance ministers meet to discuss the next steps toward
resolving the currency area's sovereign debt crisis.
[nL5E7L31G6] [nL5E7KU1LO]
 Among the heaviest decliners, Suncor Energy SU.TO slid 3
percent to C$25.97, Canadian Natural Resources CNQ.TO dropped
2.4 percent to C$30.04 and Royal Bank of Canada RY.TO lost
1.4 percent to trade at C$47.38.
 U.S. data that showed September manufacturing was better
than expected did little to boost the commodity-heavy TSX,
which underperformed Wall Street. [ID:nN1E7920I2] [.N]
 "We need to go back to Friday where Canada strongly
outperformed the U.S. market," said Francis Campeau, broker at
MF Global Canada in Montreal. "We're playing catch-up."
 Still, Friday marked the end of the worst quarter for
Canadian equities since 2008. The TSX extended losses on Monday
despite positive flows usually seen on the first day of the new
 "Most of the price action recently has been more on the
macro level than Canada-specific or single-name specific and
today is another example ... the inflows don't counterweight
the amount of pessimism in the market," added Campeau.
 At 10:25 a.m. (1425 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 142.27 points, or
1.2 percent, at 11,481.88.
 Gold mining shares were a bright spot on the index,
climbing 1.4 percent as bullion headed for its largest one-day
rise in nearly a month. Barrick Gold ABX.TO rose 1 percent to
C$49.60, while Goldcorp Inc G.TO added 0.8 percent to
 ($1=$1.05 Canadian)
 (Editing by Jeffrey Hodgson)