CANADA STOCKS-TSX tumbles to six-week low on banks, oil

Fri Jan 22, 2010 5:28pm EST
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* S&P/TSX composite drops 1.1 percent to 11,343.43

* Financials, oils help drag TSX to six-week low

* Barrick, other gold producers rise (Adds details, comments)

By Ka Yan Ng

TORONTO, Jan 22 (Reuters) - Toronto's main stock index slid to its lowest point in six weeks on Friday, roughed up by falling oil prices and by weaker financial issues that were still reeling from the White House plan to impose tighter restrictions on U.S. banks.

Heavy losses came from Royal Bank of Canada (RY.TO: Quote), down 2.44 percent at C$52.88, and Suncor Energy (SU.TO: Quote), down 1.81 percent at C$35.20.

"I think we're just going to go through a period of a bunch of uncertainty as we see all this new policy try to be digested," said Brian Pow, vice-president at Acumen Capital Partners in Calgary, referring to President Barack Obama's plan as well as fears that recent bank lending curbs in China could slash demand for commodities and hamper the global recovery.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed lower for a third straight session, down 125.67 points, or 1.1 percent, at 11,343.43. All 10 of the index's main groups were lower.

Gold prices bounced back from a one-month low, helping producers rise and chip into the heavy decline. At one point, the sector's strength helped the TSX briefly limp into positive territory.   Continued...