(Updates market reaction and adds analyst’s comments)
* TSX down 69.68 points, or 0.47 percent, at 14,612.71.
* Seven of the TSX’s 10 main groups lower
By Solarina Ho
TORONTO, July 6 (Reuters) - Canada’s main stock index was lower on Monday but had made a significant comeback from big early losses after Greek voters rejected debt bailout terms, endangering the country’s future in the euro zone and darkening overall market sentiment.
Global markets stumbled on the news, but declines were limited as the referendum decision was already partially priced in and investors were being careful not to overreact.
“I think a lot of people are just sitting on the sidelines, seeing what happens next ... The markets had declined in anticipation of what happened,” said David Cockfield, managing director and portfolio manager at Northland Wealth Management.
“All the concerns are really the over-the-horizon, if Greece goes, does somebody else go in the euro zone? It’s more theoretical than real.”
Energy stocks, hurt by tumbling crude prices following the Greek vote, were down 1.1 percent. Pipeline company Enbridge Inc fell 0.86 percent to C$57.965, and was among the most influential losers, along with Veresen Inc, which declined 6.6 percent to C$15.75.
U.S. crude prices were down 4.7 percent at $54.24 a barrel, while Brent crude lost 2.9 percent to $58.6. Emergency measures in China to help support its stock markets added to concerns about demand at a time when global oil supplies remain high.
At around 11:22 a.m. EDT (1522 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 69.68 points, or 0.47 percent, at 14,612.71. That was well off the 157.75-point, or 1.07 percent, decline earlier in the session. Seven of the index’s 10 main groups were in negative territory.
Financial stocks retreated 0.2 percent, hurt in part by a 1.0 percent decline in Manulife shares. The stock was trading at C$23.22.
Tempering losses was a 0.5 percent rise in materials stocks, home to mining companies. The sector, initially hurt by Greece and China jitters, reversed earlier losses. Barrick Gold Corp was up 2.3 percent at C$13.70.
Cockfield said market reaction was relatively subdued and that the overall economic picture heading into the second half of the year, particularly in the United States, was still positive, which should in turn help Canada.
Declining issues outnumbered advancing ones on the TSX by 144 to 101, for a 1.43-to-1 ratio on the downside. The index was posting two new 52-week highs and nine new lows.
$1=$1.26 Canadian Reporting by Solarina Ho; Editing by Peter Galloway