CANADA STOCKS-TSX dives 3.8 percent as economic worries weigh

Tue Jan 20, 2009 5:57pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Energy, financials lead TSX retreat

* Materials only advancer as gold issues shine

* Suncor biggest decliner, reports rare loss (Adds details, analyst comments)

By Natalie Armstrong

TORONTO, Jan 20 (Reuters) - Toronto's main stock index fell 3.8 percent on Tuesday as a relentlessly gloomy global economic outlook spurred a broad-based selloff led by energy and financial issues.

While oil prices jumped 6 percent ahead of the expiration of the February U.S. futures contract, energy shares led the TSX retreat, slumping 6.8 percent.

Shares of Suncor Energy SU.TO, the day's biggest decliner, slumped 15.84 percent to end at C$22.10 after Canada's second-biggest oil sands producer reported a quarterly loss, slashed capital spending and halted a C$20.6 billion oil sands expansion. [ID:nBNG347039]

Suncor is the latest oil sands producer to cut expansion plans and many analysts say new projects need crude prices to be much higher than the current level of around $39 a barrel. [ID:nN20422515]

"Most of those oil sands projects are either canceled or put on hold," said Sal Masionis, stockbroker at Brant Securities.   Continued...