CANADA STOCKS-TSX touches 14-month low on euro zone fears

Mon Sep 26, 2011 11:41am EDT
 
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   * TSX falls 8.05 points, or 0.07 percent, to 11,454.82
 * Touches weakest point since July 2010
 * Five of 10 sectors lower; materials weigh
 By Trish Nixon
 TORONTO, Sept 26 (Reuters) - Toronto's main stock index
fell in volatile trade on Monday, touching a 14-month low, as
investors worried that European governments and banks would be
unable to solve the region's debt crisis and avert the threat
of a global recession.
 The TSX briefly opened higher on hopes euro zone
policymakers were putting together new measures to tackle
Greece's debt woes, but sentiment soured as officials talked
down reports of radical new steps to address the crisis.
[MKTS/GLOB]
  "At the end of the day, people are still waiting for
direction out of Europe, stabilization and the resolution of
the Greek debt issue," said Paul Mesburis, portfolio manager at
Excel Funds Management.
 At 11:27 a.m. (1527GMT) the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 8.05 points, or 0.07
percent, at 11,454.82. Earlier, it fell to 11,293.63, its
weakest point since July 2010.
 Five of the 10 main index groups were lower. The materials
sector weighed most heavily as uncertainty about the demand
outlook for industrial metals prompted a retreat across the
base metal complex. [MET/L]
 Ivanhoe Mines (IVN.TO: Quote) was the heaviest decliner as it
plunged 10.8 percent to C$14.72, while Teck Resources (TCKb.TO: Quote)
fell 1 percent to C$30.42.
 "Part of the issue there is what is the future demand is
going to look like coming out of China ... markets are selling
off all these various commodities because there is a lot of
fear in the market."
 Gold miners came under pressure as the price of bullion was
on course for its largest monthly slide in three years. Kinross
Gold (K.TO: Quote) fell 1.7 percent to C$15.40 and Goldcorp (G.TO: Quote) was
down 0.8 percent to C$46.57. [GOL/] 
  Weak U.S. data added to the gloom. New single-family home
sales in the United States fell in August to a six-month low, a
sign the weak housing market will not provide much support for
the flagging economy anytime soon. [ID:nS1E78P0KC]
 Toronto's financials sector helped to offset losses as it
added 0.4 percent. Toronto-Dominion Bank (TD.TO: Quote) rose 0.9
percent to C$71.60, while Royal Bank of Canada (RY.TO: Quote) was up
0.8 percent to C$46.45.   
 (Additional reporting by Claire Sibboney; editing by Rob
Wilson)