CANADA STOCKS-TSX drops after Greece, Portugal downgrades

Tue Apr 27, 2010 1:19pm EDT
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* TSX down 0.69 percent at 12,196.48

* Heavily weighted banks and energy groups fall

* S&P cuts Greek debt to junk, downgrades Portugal (Adds details)

By Ka Yan Ng

TORONTO, April 27 (Reuters) - Toronto's main stock index fell sharply on Tuesday, after credit ratings for Greece and Portugal were slashed, dragging down the risk-influenced resource and financial sectors.

Heavily weighted financial shares slid 0.69 percent as Canadian Imperial Bank of Commerce (CM.TO: Quote) fell 1.27 percent to C$75.97, and Toronto-Dominion Bank (TD.TO: Quote) lost 0.98 percent to C$75.89.

In commodities, the energy sector shed 1.1 percent after oil extended early losses to near $82 a barrel, pulled lower by the nagging debt crisis concerns in Greece. The materials group fell 0.5 percent as copper, aluminum and nickel prices dropped, but gold prices firmed. [GOL/] [MET/L] [O/R]

Ratings agency Standard & Poor's downgraded Greek ratings to junk status on concerns about its ability to implement the reforms needed to address its high debt burden. [ID:nLDE63P0LU]

It also cut the rating on Portugal by two notches to A-minus, four levels above speculative, because of concerns about the country's ability to deal with high debt levels.   Continued...