CANADA STOCKS-TSX extends losses after Fed statement

Wed Sep 21, 2011 3:34pm EDT
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   * TSX down 106.46 points, or 0.87 pct at 12,103.42
 * Nine of 10 sectors lower; energy drags
 (Adds details, analyst comment)
 TORONTO, Sept 21  (Reuters) - Toronto's main stock index
extended its losses on Wednesday afternoon after the Federal
Reserve said the U.S. economic outlook remained grim, even as
it promised more stimulus action to boost demand.
 The Fed, as expected, said it would buy more long-term
Treasury securities in an effort to lower rates. At the same
time, though, the monetary policy committee noted "there are
significant downside risks to the economic outlook," spooking
 "The stimulus that they talked about is a lot less than
what people were hoping for," said Michael Sprung, president at
Sprung & Co Investment Counsel.
 "The fear is that things are going to continue at a very
very slow pace ... We need to have some sort of a fiscal
response as well, which is out of the Fed's hands."
  At 2:56 p.m. (1456 GMT) the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 106.46 points, or
0.87 percent at 12,103.42. Nine of the 10 main sectors were
  Energy issues weighed most heavily on the TSX, sinking 1.5
percent as oil prices fell on reduced demand expectations.
Cenovus Energy (CVE.TO: Quote) was down 1.8 percent at C$32.08. [O/R]
 Base-metal miners fell 4.1 percent, dragging the broader
materials sector lower as copper prices sank to 2011 lows. Teck
Resources TCKb.TO, was down 3.1 percent at C$34.99. [MET/L]
 Economic uncertainty also weighed on the industrials group,
which slid 2.8 percent. Canadian National Railway (CNR.TO: Quote) was
the top decliner as it fell 2.7 percent to C$66.77.
 Precious metal miners were among the top advancers, even as
the price of gold turned lower. Barrick Gold (ABX.TO: Quote) was up
1.4 percent at C$54.50, while Silver Wheaton SLW.TO added 2
percent to C$41.17.
 Royal Bank of Canada (RY.TO: Quote) bucked the trend among banks,
rising 0.7 percent to C$47.39, even as the broader financial
sector sank 0.5 percent.
 ($1=$1 Canadian)
 (Reporting by Trish Nixon; editing by Rob Wilson)