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

Fri Jan 22, 2010 4:46pm 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, comment)

TORONTO, Jan 22 (Reuters) - Toronto's main stock market 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, down 2.44 percent to C$52.88, and Suncor Energy SU.TO, down 1.81 percent to C$35.20.

Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier, said market players were still considering the impact of U.S. President Barack Obama's proposals to restrict U.S. banks' financial risk-taking, as well as tightening credit conditions in China.

"The broader picture is still the economic recovery," Nakamoto said.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 125.67 points, or 1.1 percent, at 11,343.43.

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.

Gold miners were the only significant heavyweight advancers, led by Barrick Gold ABX.TO, the world's largest producer, with a 0.91 percent rise to C$38.66. Agnico Eagle AEM.TO followed with a 2.3 percent climb to C$56.97.

($1=$1.06 Canadian) (Reporting by Ka Yan Ng; editing by Rob Wilson)