CANADA STOCKS-EU debt worries help drag TSX lower

Fri Nov 26, 2010 10:59am EST
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   * TSX down 40.85 points, or 0.32 pct, at 12,904.96
 * Six of the 10 main sectors lower
 * U.S. markets close at 1 p.m. EST
 By Solarina Ho
 TORONTO, Nov 26 (Reuters) - Toronto's main stock index slid
lower on Friday as investors worried that the euro zone debt
crisis could worsen and commodity prices weakened amid
geopolitical tensions and uncertainty for the economic
 The materials group, home to mining companies, was down
0.78 percent, partially weighed down by gold prices, which
dropped more than 1 percent as risk-averse markets looked to
the security of the U.S. dollar. [GOL/]
 Barrick Gold (ABX.TO: Quote) was by far the most influential
decliner, falling 1.33 percent to C$51.30. Goldcorp (G.TO: Quote) was
also down, slipping 1 percent to C$45.74.
 Diversified miner, Teck Resources TCKb.TO was off 1.27
percent at C$49.17.
 Oil prices, which dipped to $83 a barrel, helped pull
energy issues down 0.29 percent. Suncor Energy (SU.TO: Quote) lead the
group lower, falling 0.81 percent to C$34.27.
 At 10:16 a.m. (1516 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 40.85 points, or
0.32 percent, at 12,904.96. It rallied back from earlier
session lows.
 "It's coming back ... Most people don't like to be short
over a weekend so I suspect the market will probably continue
to try and win back whatever it lost unless something untoward
happens during the day," said ABC Funds portfolio manager,
Irwin Michael.
 Six of the 10 main sectors were in the red.
 "There's concern that the Irish situation will spread to
Spain and Portugal," said Michael. "The second thing is there
is increasing concern about the North-South Korea situation
getting a little out of hand."
 Portugal appeared to following the steps of Ireland, with
speculation that it may have to seek a European bailout and on
concerns Lisbon's debt problems could drag down Spain.
 The situation in the Korean peninsula remained tense days
after North Korea shelled a South Korean island and ahead of
military exercises in the region by South Korea and the United
States . [ID:nL3E6MQ058]
 Markets were very thin on Friday morning, following
Thursday's U.S. Thanksgiving and with markets south of the
border closing at 1 p.m. EST (1800 GMT).
 ($1=$1.02 Canadian)
 (Reporting by Solarina Ho; editing by Rob Wilson)