CANADA STOCKS-TSX slumps on recovery fears, BMO results

Tue Aug 24, 2010 4:40pm EDT
 
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* TSX down 161.28 points, or 1.4 percent, at 11,557.35

* BMO slides after results miss Street view

* Six of index's 10 main groups lower (Updates to close, adds details)

By Jennifer Kwan

TORONTO, Aug 24 (Reuters) - Toronto's main stock index closed sharply lower on Tuesday as Bank of Montreal's results came in below market expectations and concerns over domestic growth and the global recovery pressured commodity prices.

The TSX's key financial sector led the slide, dropping 2.9 percent, its steepest percentage loss in two months.

Bank of Montreal (BMO.TO: Quote), the top net loser, said its quarterly profit climbed 20 percent as it set aside much less money for bad loans, but it missed market expectations as trading income dived. BMO shares fell 6 percent to C$55.50. [ID:nN24241238]

"BMO had been one of fastest movers and best performers in the last two quarters so it had risen high. People had reasonable expectations," said John Stephenson, senior vice-president at First Asset Investment Management Inc.

"They expected a reasonably in-line quarter so it was a shock."   Continued...