CANADA STOCKS-TSX deepens decline as resources drag

Thu Oct 21, 2010 2:44pm EDT
 
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 * TSX falls 0.53 percent to 12,582.86
 * Nine of 10 sectors lower, led by resources
 (Adds details)
 TORONTO, Oct 21 (Reuters) - Toronto's resource-heavy main
stock index slid on Thursday afternoon, pulled down by a
selloff in commodity prices as investors worried about the
sluggish pace of the U.S. recovery despite another round of
strong U.S. corporate earnings.
 Key decliners included Suncor Energy (SU.TO: Quote), down 1.8
percent at C$33.65, and Kinross Gold (K.TO: Quote), which shed 3.39
percent to C$17.96. Toronto-Dominion Bank (TD.TO: Quote) fell 1
percent to C$75.22, while Encana (ECA.TO: Quote) dropped 2.4 percent
to C$28.42.
 At 2:25 p.m. (1825 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 67.06 points, or
0.53 percent, at 12,582.86. Nine of the index's 10 main groups
were lower.
 U.S. dollar-denominated commodity prices extended declines,
accelerated by a rebound in the U.S. greenback, sending the
index's materials group down 1.3 percent and its energy sector
off 0.7 percent.
 A batch of new U.S. data on Thursday painted a picture of
an economy stuck in slow-growth mode, reinforcing views that
the U.S. Federal Reserve will ease monetary policy further next
month to try to reinvigorate the recovery. [ID:nN21275986]
 "There's still a lot of indecision in this market. The
macroeconomic picture is not as bright as what we'd want it to
be and yet the corporate picture still looks reasonably strong
with all these companies coming out with respectable earnings
and guidance," said Gareth Watson, Canadian equity advisor in
the Portfolio Advisory Group at ScotiaMcLeod.
 "At some point that divergence...has to come into play."
 Potash Corp (POT.TO: Quote) was a stock to watch on Thursday as
the Saskatchewan government was set to reveal its
recommendation on BHP Billiton's hostile bid for the fertilizer
company, which is based in the province. Potash Corp was
unchanged at C$145.90. [ID:nN20221123]
 ($1=$1.03 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)