CANADA STOCKS-TSX slides on Greek-default, growth fears

Mon Sep 12, 2011 10:22am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 *TSX down 93.36 points, or 0.8 pct, at 12,294.18
 *Nine of 10 sectors weaker, techs gain on RIM
 (Updates with details, comments)
 By Claire Sibonney
 TORONTO, Sept 12 (Reuters) - Toronto's main stock market
index fell sharply on Monday morning following a steep sell-off
in global equities and commodities on mounting fears over
Europe's debt crisis and slowing global growth.
 All three of the index's most heavily weighted sectors -
financial, energy and materials - dived.
 Royal Bank of Canada (RY.TO: Quote) dropped 1.9 percent to
C$46.56, Suncor Energy (SU.TO: Quote) fell 1.3 percent to C$29.07,
and, as investors cashed out of even safe-haven bullion to
cover losses elsewhere, miner Goldcorp (G.TO: Quote) lost 1.3 percent
to C$54.18. [GOL/]
 "With the uncertainty especially in Europe at this point,
with the Greece situation - will they default, will Moody's
come in and downgrade the major French banks? Those are the big
questions at this point," said Serge Pepin, head of investments
at BMO Investments.
 Worries that Greece may default on its debt rose after
senior politicians in German Chancellor Angela Merkel's
center-right coalition started talking openly about it.
 Greece, meanwhile, confirmed on Monday that it had only
enough cash for a few more weeks. [nL5E7KC0F1]
 At 10:06 a.m. (1406 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 93.36 points, or 0.8
percent, at 12,294.18. Nine of the index's 10 sectors were
lower as technology shares rose, led by Research In Motion
RIM.TO, up 1.2 percent at C$29.82.
 Earlier, the TSX fell as low as 12,226.85, its weakest
level since Aug. 26.
 Risk aversion was further exacerbated by the failure of the
weekend's meeting of finance ministers from the Group of Seven
industrialized nations to come up with any fresh proposals for
boosting global growth. [nN1E78728T]
 "We still see some strong fundamentals out there in the
marketplace...but if things do worsen on an economic basis, it
will impact the corporate balance sheets, it's a given," Pepin
 ($1=$1.00 Canadian)
 (Reporting by Claire Sibonney; editing by Peter Galloway)