CANADA STOCKS-TSX in bear zone as resources pull it to 2011 low

Fri Sep 23, 2011 4:54pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX falls 99.64 points, or 0.86 percent, at 11,462.87
 * Index touches lowest point since July 2010
 * Eight of 10 sectors higher; materials, energy weigh
 (Updates to close, adds analyst's comment, details)
 By Trish Nixon
 TORONTO, Sept 23 (Reuters) - A selloff in resource-based
shares drove Toronto's main stock index to a 2011 low and into
bear territory on Friday as growing fears of a global recession
and a Greek debt default battered commodities.
 The TSX index's heavyweight materials group tumbled 4.4
percent as base-metal miners continued their fall and as gold
prices plunged more than 6 percent, the biggest slide since the
financial crisis of 2008. The TSX's gold-mining sub-group was
down 5 percent. [MET/L] [GOL/]
 "Golds were for most of the year the big performers, and
then fears of the recession, profit-taking, and (U.S. Federal
Reserve Chairman Ben) Bernanke's ineffective attempt at
propping things up all converged in sending them down," said
John Ing, president of Maison Placements Canada.
 "These stocks got caught in the downdraft, just like we saw
in '08."
 Miner Barrick Gold ABX.TO was the heaviest decliner, down
4.9 percent at C$47.73, while GoldCorp G.TO fell 4.4 percent
to C$46.95.
 First Quantum Minerals FM.TO tumbled 7.3 percent to
C$13.71 as copper fell to its lowest level since August 2010.
[MET/L]
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended the session down 99.64 points, or 0.86 percent,
at 11,462.87. It touched a session low of 11,355.82, its
weakest point since July 2010.
 Eight of the 10 index sectors were higher, but energy
stocks sank 1.1 percent as oil fell to six-week lows. Canadian
Natural Resources CNQ.TO slipped 2.2 percent to C$30.23.
[O/R]
 The financials group helped cushion the losses as it held
on to moderate gains, ending the session up 0.5 percent. Royal
Bank of Canada RY.TO was the index's most heavily weighted
advancer, up 1.6 percent at C$46.09, while Bank of Nova Scotia
BNS.TO rose 1.5 percent to C$50.73.
 "It's sort of the quiet before the storm, we haven't
figured out yet what's going to happen with the European
banks," Ing said.
 "There's the inevitable contagion, and our banks are not
immune from the problems overseas or south of the border."
 The TSX lost nearly 7 percent of its value this week and
has tumbled more than 20 percent from the 2011 high it set in
March, meeting the definition of a bear move.
 A pledge by G20 policymakers that they will calm the global
financial system failed to appease investors, who are concerned
that authorities are unable to respond effectively to the
mounting euro zone debt crisis and sluggish growth in major
world economies. [nL5E7KN1IW]
($1=$1.03 Canadian)
 (Editing by Peter Galloway)