CANADA STOCKS-TSX falls on euro zone worries, Sun Life

Mon Oct 17, 2011 10:59am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * TSX down 124.84 points, or 1 pct, at 11,956.89.
 * Energy, materials, financials weaker
 * Sun Life falls 7 percent on earnings warning
 (Updates with details, commentary)
 By Claire Sibonney
 TORONTO, Oct 17 (Reuters) - Toronto's main stock index fell
1 percent on Monday on worries that an upcoming European summit
would not yield a definitive plan to tackle the euro zone's
debt crisis, and on an earnings warning from Sun Life Financial
 The TSX's three biggest sectors - materials, energy and
financials - were all weaker as commodity prices fell and
domestic earnings expectations succumbed to worries about the
global economy.
 Among the heaviest decliners, Sun Life slumped 7.2 percent
to C$24.55 after Canada's third largest insurer said it expects
to post a loss in its third quarter due to unfavorable moves in
both interest rates and equity markets. [ID:nN1E79G066]
 No. 1 insurer Manulife Financial MFC.TO retreated in
sympathy, falling 3.7 percent to C$12.45.
 "The whole insurance sector is under pressure," said
Francis Campeau, a broker at MF Global in Montreal.
  With fears of a global recession in the air, investors
were anxious about the outlook for Canada's biggest companies,
as earnings season kicks off this week. [.TO/0]
 Weighing on global sentiment, German Finance Minister
Wolfgang Schaeuble said European governments would not resolve
the region's debt crisis at a European Union summit scheduled
for Oct. 23. [ID:nB4E7LA00A] [ID:nL5E7LH1GL]
 "We've had an extremely long up-streak in October and I
think there was too much hope priced in the market," said
Campeau. "The market today is going back to reality."
 At 10:40 a.m. (1440 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 124.84 points, or
1.03 percent, at 11,956.89.
 Potash Corp POT.TO was most influential decliner, falling
3.2 percent to C$49.69. Suncor Energy SU.TO was close behind,
off 2.1 percent at C$30.05.
 Highlighting recent worries about the U.S. economy, a gauge
of manufacturing in New York State contracted for the fifth
month in a row in October as new orders were flat and the
outlook for the coming months weakened. [ID:nN1E79G089]
 Data also showed foreign purchases of Canadian securities
slowed to C$7.9 billion ($7.8 billion) in August from C$12.1
billion in July, with most of the investment going to the bond
market. [ID:nN1E79G0AP]
 Research In Motion dropped 3.9 percent to C$23.32. The
BlackBerry maker said it will offer free premium apps worth
more than $100, in a bid to appease customers following its
massive service disruption last week. [ID:nL3E7LH182]
 ($1=$1.02 Canadian)
 (Editing by Rob Wilson)