CANADA STOCKS-TSX slips on profit-taking, euro zone worry

Mon Dec 20, 2010 5:31pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * TSX drops 8.18 points, or 0.06 percent, at 13,193.28
 * Seven of the 10 main groups were higher
 * Financial group down 1 percent
 * Materials and energy groups lone gainers
 (Adds details)
 By Solarina Ho
 TORONTO, Dec 20 (Reuters) - Toronto's main stock index
closed lower on Monday on profit-taking among hefty financial
stocks as worries about Europe's sovereign debt intensified.
 Financial stocks ended 1 percent lower and led seven of the
index's 10 main sectors into negative territory. Four of the
Canada's big banks fell. Toronto-Dominion Bank (TD.TO: Quote) was the
weightiest decliner, down 2.33 percent at C$70.52. Royal Bank
of Canada (RY.TO: Quote) followed, dropping 1.4 percent to C$50.78,
while Bank of Nova Scotia (BNS.TO: Quote) eased 0.92 percent to
C$56.08.
 "This smacks of last-minute profit-taking. We are very
close to the year-end," said Elvis Picardo, an analyst and
strategist at Global Securities.
 Continuing fears of more ratings downgrades for indebted
euro zone countries and banks weighed on the sector.
 Bank of Montreal (BMO.TO: Quote) extended its slide, falling 2.41
percent to C$56.60 as analysts slashed share-price targets
following the bank's $4.1 billion deal to buy Wisconsin lender
Marshall & Ilsley Corp last week. [ID:nN20206439]
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 8.18 points, or 0.06 percent, at
13,193.28. After spending the day in positive territory, the
index began to slip 30 minutes before the close, turning
negative at the close.
 Moody's Investors Service said it may cut the ratings on
Spanish banks following its multi-notch downgrade of Ireland's
credit rating last week, while speculation has risen that
France and Belgium may also face cuts. [ID:nLDE6BJ1G1]
 "That issue is something that's been coming up off and on
for the last few months now," Picardo said. "There's really no
sense of panic, but it's an issue that's very much front and
center for most investors and it does have the tendency to
affect the financial sector more than anything else."
 The lone advancing groups were the energy and materials
heavyweights. The technology sector finished flat.
 Energy stocks were up 0.79 percent. Talisman Energy
TLM.TO was the most influential mover, jumping 4.79 percent
to C$21.89. South Africa's Sasol said on Monday it will pay
C$1.05 billion for a stake in one of Talisman's share gas
properties. [ID:nLDE6BJ04G]
 Suncor Energy (SU.TO: Quote) gained 0.94 percent to C$36.64.
 "The price of oil was up, gas was up, the cold weather
everywhere is having an impact," said John Ing, president of
Maison Placements Canada.
 Oil price gains were tempered by a stronger U.S. dollar and
the euro zone debt concerns. [O/R]
 Gold miners helped give the index's materials group a 0.48
percent lift. Goldcorp (G.TO: Quote) shares gained 1.38 percent to
C$45.59, while Agnico Eagle (AEM.TO: Quote) climbed 2.07 percent to
C$78.04.
Gold prices climbed  as investors looked for a safe haven
from euro zone jitters and tensions in Korea following a 90
minute-plus live-fire artillery drill by South Korea on Monday.
[ID:nL3E6NK01M]
Tempering gains in the materials group was a 1.51 percent
decline in Teck Resources (TCKb.TO: Quote), which finished at
C$57.51.
 BCE (BCE.TO: Quote), the parent company of Bell Canada, was off
1.46 percent at C$35.20. Canadian regulators said after markets
closed on Monday they had fined Bell Canada C$1.3 million for
violating rules that prohibited telemarketers from calling
consumers registered on a national "do not call" list.
[ID:nN20105079]
 ($1=$1.02 Canadian)
 (Reporting by Solarina Ho; editing by Peter Galloway)