CANADA STOCKS-Financials, energy issues drag TSX lower

Mon Nov 22, 2010 5:35pm EST
 
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   * TSX down 27.32 points, or 0.21 pct, at 12,929.01
 * Seven of the 10 main groups higher
 By Solarina Ho
 TORONTO, Nov 22 (Reuters) - Toronto's main stock index
finished lower on Monday as weakness in heavily weighted energy
and financial issues offset gains in most other sectors.
 The financial group was down 0.8 percent, with Royal Bank
of Canada (RY.TO: Quote) down 0.89 percent at C$54.83. Bank of Nova
Scotia (BNS.TO: Quote), which agreed to buy the 82 percent of
DundeeWealth DW.TO it does not already own for C$2.3 billion,
was down 0.82 at C$54.20. [ID:nN22123999]
 Manulife Financial Corp (MFC.TO: Quote) shares were off 3.06
percent at C$14.88 after Citigroup downgraded Canada's largest
insurer to "sell", citing a weak outlook for its U.S. operation
and the risk of dilution from further equity issuance.
[ID:nSGE6AL0OV] Sun Life Financial (SLF.TO: Quote) also fell, slipping
1.17 percent to C$28.62.
 Energy issues slid 0.8 percent, in step with falling oil
prices. Crude futures fell against a stronger U.S. dollar and
on worries about European sovereign debt levels.
 Canadian Natural Resources (CNQ.TO: Quote) fell 1.28 percent to
C$38.97 while Suncor Energy (SU.TO: Quote) dropped 1 percent to
C$34.89. Encana Corp (ECA.TO: Quote) was off 1.06 percent at C$28.95.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE finished down 27.32 points, or 0.21 percent, at
12,929.01. Seven of the TSX's 10 main groups were higher.
 Industrials were also down, falling 0.5 percent.
 Higher gold prices helped lift the materials group, home to
miners, by 0.68 percent. Barrick Gold (ABX.TO: Quote) rose 0.73
percent to C$51.08, while Kinross Gold (K.TO: Quote) climbed 1.1
percent to C$18.43.
 Shares of junior miner Potash One KCL.TO jumped 25.14
percent to C$4.53 on news that German fertilizer producer K+S
AG was buying it for C$434 million. [ID:nLDE6AL1DM]
 The TSX spent most of the day in the red, and a late
session rally was not enough to bring it into positive
territory again.
 "I think we're going to see a lot of that this week    ...
Markets are going to drift aimlessly," said Bruce Latimer, a
trader at Dundee Securities.
 "It's off its bottom; there's just not a lot of commitment
out here today on the market. (Investors) also want to see how
the Irish situation sorts itself out."
 Europe's ongoing debt worries dampened market sentiment and
a shortened trading week due to Thursday's U.S. Thanksgiving
holiday kept many investors on the sidelines.
 In Europe, Ireland's unpopular coalition government began
to unravel on Monday, a day after agreeing to a
multibillion-euro bailout package, raising doubts it will be
able to push through an austerity budget crucial to receiving
financial aid. [ID:nLDE6AL00M]
 In individual company news, Lululemon Athletica LLL.TO
jumped to its higher close ever, up 5 percent at C$54.00, after
Oprah Winfrey touted its yoga wear on her television show.
[ID:nN22288564]
 Technology licensing firm Wi-Lan Inc (WIN.TO: Quote), which said
it launched a patent infringement lawsuit against a number of
U.S. companies including Comcast Corp (CMCSA.O: Quote) and Time Warner
Cable Inc TWC.N, was down 1.31 percent at C$4.53.
 ($1=$1.02 Canadian)
 (Reporting by Solarina Ho; editing by Rob Wilson)