July 30, 2010 / 8:43 PM / 7 years ago

CANADA STOCKS-TSX falls on economic recovery worries

3 Min Read

*TSX ends down 15.21 points at 11,713.43

*Index in narrow range ahead of Canadian holiday

*Six of TSX's main sectors lower

(Updates figures to close, adds quotes)

By Jennifer Kwan

TORONTO, July 30 (Reuters) - Toronto's main stock index ended lower on Friday as weaker than expected gross domestic product data fueled investor fears about a slow recovery.

On the downside were energy and financial shares, down 0.4 percent and 0.5 percent, respectively, after U.S. growth slowed in the second quarter, adding to anxiety about the longer-term outlook. [ID:nN30215488]. Canada's economy grew in May, but only just. [ID:nN30274982]

Canadian Natural Resources (CNQ.TO) dropped 1 percent to C$35.40 and Toronto-Dominion Bank (TD.TO) sank 1.1 percent to C$73.16.

"You're seeing some of these economically sensitive sectors being weighed down by concerns that growth is not yet as robust as it should be," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE finished the day down 15.21 points, or 0.13 percent, at 11,713.43, with six of its 10 main sectors lower. It was unchanged for the week.

But Picardo said the market traded in a narrow range as investors were reluctant to make big bets ahead of a holiday weekend. The TSX is closed on Monday for the Civic Holiday.

"The markets have traded in a fairly narrow range all day. It's a combination in Canada of seasonally low volumes coupled with the fact that you've got a long weekend coming up," he said.

"There's still a considerable degree of uncertainty out there so when you have a long weekend -- and especially with the U.S. open and Canada closed -- the tendency might be for investors to take their money and run."

U.S. gross domestic product expanded at a 2.4 percent annual rate in the second quarter, after an upwardly revised 3.7 percent gain in the January-March quarter. That was just below the 2.5 percent second quarter forecast. [ID:nN30215488]

But gold miners rose as bullion prices rallied on the disappointing U.S. growth data. Barrick Gold (ABX.TO) was up 0.6 percent at C$42.26 and Goldcorp (G.TO) rose 0.3 percent to C$40.30. [GOL/] ($1=$1.03 Canadian) (Reporting by Jennifer Kwan; editing by Janet Guttsman)

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