CANADA STOCKS-TSX falters as growth worries weigh

Thu Jun 24, 2010 10:41am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 *TSX down 59.97 points, or 0.51 percent, at 11,747.53
 *Nine of TSX main groups lower
 *RIM little changed ahead of quarterly earnings
 *Reuters poll sees TSX index higher end 2010
 (Adds details, quote)
 By Jennifer Kwan
 TORONTO, June 24 (Reuters) - Toronto's resource-heavy index
stumbled on Thursday morning as commodity prices came under
pressure on renewed doubts about the pace of the global
economic recovery.
 A mix of big names moved lower, including Royal Bank of
Canada RY.TO, down 1 percent to C$53.24, Suncor Energy
SU.TO, which fell 1.3 percent to C$33.61, and Potash Corp of
Saskatchewan POT.TO, off 0.6 percent at C$101.19. Teck
Resources Ltd TCKb.TO dropped 1.4 percent to C$35.16.
 The Toronto index's retreat mirrored the path of global
equities, which eased on concerns about economic growth after a
glum outlook from the U.S. Federal Reserve. [MKTS/GLOB] [.N]
 The Fed on Wednesday acknowledged the faltering pace of the
U.S. economic recovery as it renewed its vow to hold benchmark
interest rates exceptionally low for an extended period.
 "It's sending a message to the market that they're
extremely concerned about the recovery," said Michael Sprung,
president at Sprung & Co. Investment Counsel, referring to the
Fed's unchanged rate stance. "Normally by this time of the
recovery we would be seeing some rate increases if there were
any solid underpinnings."
 "That in turn has its affects on commodities and that is
not good news for the Canadian market," he added.
 At 10:11 a.m. (1411 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 59.97 points, or
0.51 percent, at 11,747.53, with nine of its 10 main groups
lower. The small healthcare group was up 0.1 percent.
 The TSX has been volatile in recent sessions, with fresh
concerns about economic growth centered on weaker than expected
data and euro zone debt worries overhanging broader financial
 In a Reuters poll published on Thursday, Canada's main
stock index was seen ticking higher throughout the second half
of the year and climbing even further into the middle of 2011.
 But the forecasts into next year were in a wide range,
reflecting uncertainty about the pace of recovery.
 In individual company news, investors will be closely
watching the quarterly results of Research in Motion RIM.TO,
expected after the close of trading on Thursday. RIM shares
were largely flat, up 0.05 percent at C$62.04. [ID:nN22121298]
 Goldcorp Inc G.TO defended its embattled Marlin mine in
Guatemala on Thursday after the Guatemalan government announced
it would suspend operations at the gold-silver mine due to
allegations it was contaminating water supplies. Goldcorp
shares were down 0.5 percent at C$46.16. [ID:nN24104817]
 ($1=$1.04 Canadian)
 (Reporting by Jennifer Kwan; Editing by Mario Di Simine)