CANADA STOCKS-TSX falls on recovery fears, BMO results

Tue Aug 24, 2010 10:23am EDT
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*TSX down 117.02 points, or 1.0 percent, at 11,601.61

*BMO slides after results miss Street view

*Potash gains on lingering takeover optimism (Updates to midmorning, adds quote)

By Jennifer Kwan

TORONTO, Aug 24 (Reuters) - Toronto's main stock index fell sharply on Tuesday morning as concerns over domestic growth and the global recovery pressured commodity prices, while results from Bank of Montreal (BMO.TO: Quote) disappointed.

The index's key financial sector dropped 1.9 percent and led the fall.

Bank of Montreal, a top net loser, said its quarterly profit rose 20 percent as it set aside much less money for bad loans, but it missed expectations as trading income dived. BMO shares fell 3.8 percent to C$56.84. [ID:nN24241238]

"BMO's earnings came in below expectations. Other banks are down in sympathy," said Francis Campeau, broker at MF Global Canada in Montreal.

The market worried that other Canadian banks would report similar results and pushed their shares down. Royal Bank of Canada (RY.TO: Quote), Canada's biggest lender, dropped 2.3 percent, while Toronto-Dominion Bank (TD.TO: Quote) fell 1 percent.   Continued...