CANADA STOCKS-Broad selloff hits TSX on stimulus worries

Tue Jun 11, 2013 11:04am EDT
 
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* TSX down 113.71 points, or 0.92 percent, at 12,268.96
    * Markets slide after Bank of Japan withholds further
stimulus
    * Kinross halts Ecuador project; Lululemon CEO steps down

    By Alastair Sharp
    TORONTO, June 11 (Reuters) - Canada's main stock index fell
sharply on Tuesday in a broad selloff led by mining and
financial shares, which were hurt by signs that global central
banks may be less forthcoming with monetary stimulus.
    Major decliners included Kinross Gold Corp, which
dropped almost 4 percent after the company halted development at
a gold project in Ecuador. Yogawear maker Lululemon Athletica
Inc fell more than 17 percent after saying its chief
executive was stepping down.  
    But those moves were eclipsed by smaller moves in larger
players, including some of Canada's biggest banks, energy
companies and utilities.
    "It's an across-the-board, sell-the-market,
get-out-of-stocks day," said John Stephenson, senior vice
president at First Asset Investment Management.
    "Anything that had been working for most of this year, at
least until the early part of May, which is mainly the
defensives, so things like utilities, pipelines, telcos, REITs
in both Canada and the U.S., have absolutely gotten
slaughtered," he said.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 113.71 points, or 0.92 percent, at 12,268.96
by mid-morning.
    The decline was mirrored in equity markets globally, along
with falls in the price of commodities, government debt and the
value of the U.S. dollar.
    The selloff was sparked by the Bank of Japan electing not to
take any fresh measures to tackle rising government bond yields
that threaten to thwart its $1.4 trillion stimulus program.
 
    The two heaviest weights on the Toronto index were Toronto
Dominion Bank, down 0.9 percent to C$81.70, and Bank of
Nova Scotia, off 1 percent at C$56.81.
    Integrated energy company Suncor Energy fell 1.3
percent to C$31.39, while pipeline operator Enbridge Inc
 slipped 1 percent to C$44.07.
    Kinross was last down 4.2 percent at C$6.17, while Lululemon
shares were off 16.7 percent at C$70.00. 
    Shares in Catamaran Corp, a pharmacy benefit
manager, surged more than 12 percent after major U.S. health
insurer Cigna Corp said the pair had signed a 10-year
agreement.