CANADA STOCKS-TSX tumbles as anxiety over Greece deepens

Mon Sep 12, 2011 2:27pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 *TSX down 274.45 points, or 2.22 percent, at 12,113.09.
 *All 10 index sectors weaker
 (Updates with details, comments)
 By Trish Nixon
 TORONTO, Sept 12 (Reuters) - Toronto's main stock market
index tumbled more than 2 percent on Monday afternoon as fears
of a Greek debt default that could spread to other countries
ripped through world markets.
 The S&P/TSX composite underperformed its U.S. counterparts
as hard-hit commodity prices pressured the resource-heavy
index, with investors cashing out of even safe-haven bullion to
cover losses elsewhere. [GOL/]
 "It's quite stunning that we are down over 2 percent," said
Francis Campeau, broker at MF Global Canada in Montreal.
 "The gold sector used to play a counter-weight to the
financial firms, and today (both sectors) are going south ...
so for the first time in roughly a month we've underperformed
on a down market."
  Greece confirmed on Monday that it had only enough cash
for a few more weeks, and concerns grew that Moody's Investors
Service could downgrade the credit-worthiness of French banks,
which are widely exposed to Greek bonds. [nL5E7KC0F1]
  At 1:50 p.m. (1750 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 274.45 points, or
2.22 percent, at 12,113.09. All of the index's 10 sectors were
lower. Earlier, the TSX fell as low as 12,101.83, its weakest
level since Aug. 26.
 Among heavily weighted stocks, Royal Bank of Canada RY.TO
dropped 2.7 percent to C$46.17, Goldcorp G.TO lost 4.2
percent to C$52.58, while Suncor Energy SU.TO fell 3.7
percent to C$28.36.
 Campeau said the index could re-test its August lows,
roughly a 1-1/2 percent drop from its current level, through
the week.
 Risk aversion was 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," said
Serge Pepin, head of investments at BMO Investments.
  ($1=$1.00 Canadian)
 (Reporting by Trish Nixon; editing by Peter Galloway)