CANADA STOCKS-TSX hits 15-month low on Greece, growth fears

Mon Oct 3, 2011 5:11pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX ends down 372 points, or 3.2 pct, at 11,251.84
 * Index hits lowest level since July 2010
 * All 10 sectors down sharply
 (Updates to close)
 By Claire Sibonney
 TORONTO, Oct 3 (Reuters) - Toronto's main stock market
index sank more than 3 percent on Monday, notching its lowest
close since July 2010, as fears about global growth and a Greek
default drove investors to the exits.
 All 10 of the index's sectors were down sharply, led by
energy, base-metals and financial shares as commodity prices
tumbled and investors worried about the exposure of banks to
European debt after Greece warned it would miss deficit-cutting
targets this year. [ID:nL5E7L33JA]
 Among the heaviest decliners, Suncor Energy SU.TO slid
5.5 percent to C$25.28, Toronto-Dominion Bank TD.TO dropped 3
percent to C$71.67, Canadian Natural Resources CNQ.TO fell
5.6 percent to C$29.05, and Royal Bank of Canada RY.TO was
down 2.7 percent to C$46.78.
 Canadian banks have said they have little or no exposure to
Greek debt, but dropped in sympathy with their U.S. and
European counterparts.
 "It's no surprise that in the financial group, which is
what people are most worried about, there's no such thing as
decoupling," said Subodh Kumar, chief investment strategist at
Subodh Kumar & Associates.
 "Even though Canadian banks may be stronger, they tend to
be hit along with the others."
 Adding to the pessimism, figures showed global
manufacturing shrank for the first time in more than two years
in September, reinforcing fears of another recession despite a
modest bounce in U.S. factory activity. [ID:nNL5E7L30K3]
 Slowing growth in China is a particular concern for
Canada's resource-heavy market, Kumar said, noting investors
will have a better sense of the market's bottom once earnings
estimates are cut sufficiently to reflect a deteriorating
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended down 372 points, or 3.2 percent, at 11,251.84.
The day's low was 11,221.21.
 Joe Ismail, technical analyst at Maison Placements Canada
in Edmonton, said the TSX is in major oversold territory though
it still has room to fall. He said the next major support level
is around 9,500-9,700.
 The few gainers were led by Euro Goldfields EGU.TO, which
jumped 15 percent to C$9.60 after it said it has agreed to
terms for a $600-million, seven-year loan from Qatar Holdings.
 Birchcliff Energy BIR.TO also surged, rising 14 percent
to C$11.61 after the company said it was looking to sell itself
after receiving unsolicited buyout offers. [ID:nL3E7L30PS]
 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 a new quarter.
The index has fallen more than 20 percent since highs reached
in March.
 ($1=$1.05 Canadian)
 (Editing by Peter Galloway)