TSX dragged lower by weak oils, financials

Wed Feb 18, 2009 4:51pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Jennifer Kwan

TORONTO (Reuters) - Toronto's main stock index fell broadly on Wednesday for a third straight session, touching a 2009 low, pressured by weak energy and financial issues and a slide by Rogers Communications Inc.

The heavily weighted financial services and energy sectors both retreated 3.6 percent, while telecoms also tumbled 3.6 percent.

EnCana Corp dropped 3.7 percent to C$49.40 and Royal Bank of Canada fell 4.2 percent to C$26.98.

Rogers shed 7.7 percent to C$31.70 after the media and communications company said it swung to a quarterly loss as it took almost C$300 million in impairment charges on its conventional television business to reflect the impact of the weak economy.

The market's drop came even as U.S. President Barack Obama unveiled a plan that pledged up to $275 billion to help stabilize the troubled U.S. housing market.

"There continues to be a lot of skepticism about these big, billion-dollar packages being announced by the U.S. government," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

Picardo said the Toronto market may also be under pressure as it plays "catch up" to slumping U.S. stocks.

The Toronto index is down 9 percent so far this year, while the Dow Jones industrial average is down about 14 percent and the Standard & Poor's 500 index is off about 13 percent, he noted.   Continued...

<p>A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch</p>