CANADA STOCKS-TSX dives on weak global data, German fears

Wed Nov 23, 2011 1:55pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * TSX down 170.36 pts, or 1.4 pct, at 11,624.83
 * Materials, energy sectors lead index losses
 * Chinese economic data weighs
 (Adds details, analyst's comment)
 By Jon Cook
 TORONTO, Nov 23 (Reuters) - Toronto's main stock index sank
as much as 2 percent on Wednesday as resource issues tumbled on
soft economic data from the United States, China and Europe,
and on fears euro zone debt contagion had spread to Germany.
 A slowdown in Chinese and European manufacturing, coupled
with a poor sale of German bonds, higher U.S. jobless numbers
and flat consumer spending, sparked fears of a global slowdown.
 "It's ugly," said Sal Masionis, a stockbroker at Brant
Securities. "You really have two punches in one day; it's very
very serious."
 At 1:26 p.m. (1826 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 170.36 points, or
1.4 percent, at 11,624.83, after falling as low as 11,540.23
earlier in the day. That was the TSX's lowest level since Oct.
 Commodities took it on the chin, with prices for oil, gold,
and copper and other base metals falling sharply, sending
energy and materials shares spiraling downward.
 Energy stocks fell nearly 3 percent. [O/R] with Suncor
Energy (SU.TO: Quote) sliding more than 3 percent to C$29.38, leading
the oil and gas retreat.
 Heavily weighted materials issues were pulled lower by
plunging gold prices, which dropped more than 1 percent as the
intensifying euro zone debt crisis pushed up the safe-haven
appeal of the U.S. dollar. [GOL/]
 Miner Goldcorp Inc (G.TO: Quote) was the biggest decliner,
dropping 2.3 percent to C$51.23.
 A fall in copper and base-metals prices, spurred by a big
contraction in Chinese factory activity, pushed base-metals
miners down by more than 2 percent. [ID:nL4E7MN20U]
 Teck Resources Ltd TCKb.TO was among the hardest hit
mining stocks, falling 3 percent to C$33.38.
 The index's financial sector sputtered after a surprisingly
weak sale of German bonds ignited fears that Europe's debt
crisis was now contaminating the euro zone's strongest economy.
 Royal Bank of Canada (RY.TO: Quote) fell 1.9 percent to C$44.07,
and Bank of Nova Scotia (BNS.TO: Quote) was down 2.2 percent at
 "We've had a slew of these news items on the macro front
that are weighing quite heavily and even any one of these in
isolation on a given day like today would set a negative tone
for the market," said Garey Aitken, chief investment officer
for the Bissett Canadian Equity Fund.
 Aitken, who manages more than $7 billion in funds, said the
European crisis was the biggest cause of the dive in
"economically sensitive" materials, energy and industrial
 "There's just more and more fatigue and frustration on the
part of market participants when they look at this sovereign
debt problem in Europe," Aitken said. "There's a lot of talk
and not enough action."
 ($1=$1.05 Canadian)
 (Editing by Peter Galloway)