UDPATE 3-Toronto stocks dive on commodities, rate chagrin

Tue Oct 21, 2008 4:56pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Materials lead TSX down, hit by falling commodities

* Bank of Canada 25 bps rate cut disappoints

* Sun Life Financial sinks 13.2 percent after results

(Adds official closing numbers, quotes, details)

TORONTO, Oct 21 (Reuters) - Toronto Stock Exchange's main index plunged on Tuesday, hit by disappointment over a smaller-than-expected rate cut by the Bank of Canada and by falling commodity prices.

The market had largely expected the Bank of Canada to cut its key rate by 50 basis points and the 25-point cut that it announced failed to fulfill expectations.

"The market is disappointed as they were thinking they'd cut a half," said Douglas Davis, president of brokerage Davis-Rea.

Also weighing was a quarterly loss reported by big Canadian insurer Sun Life Financial Inc SLF.TO, which was hurt by big credit-related writedowns and a decline in equity markets. [ID:nN21283573]

"The focus once seems to be turning to the real economy and to earnings reports," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.   Continued...