February 6, 2012 / 3:43 PM / 7 years ago

CANADA STOCKS-TSX stumbles as Greece concerns weigh

* TSX down 16.41 points, or 0.13 pct, at 12,560.87

* Seven of 10 sectors lower

* Weak oil pressures TSX energy shares

By Jennifer Kwan

TORONTO, Feb 6 (Reuters) - Canada’s resource-heavy main stock index was lower on Monday morning as oil prices weakened on growing fears that Greece will not be able to avoid a messy debt default.

The index’s key energy sector led the market lower, falling 0.2 percent as oil prices dropped as traders and investors worried that a failure to agree on a new debt deal for Greece would suppress demand in the euro zone.

Suncor Energy fell 0.1 percent to C$34.86, and Canadian Natural Resources dropped 0.7 percent to C$40.57.

Greek political leaders had still not agreed on Monday to accept deeply unpopular public wage cuts and other painful measures that international lenders are demanding as a condition of a second Greek bailout. Athens needs to secure a bailout to avoid a disorderly default.

Greece’s slow progress to sort out the Greek mess has angered the country’s European partners and undermined investor confidence across all markets.

“It’s not going to leave us until it’s settled,” Bruce Latimer, trader at Dundee Securities, said of the influence of the debt talks on broader market sentiment.

At 10:00 a.m. (1500 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was 16.41 points, or 0.13 percent, lower at 12,560.87. Seven of the index’s 10 main sectors were lower.

Latimer said it’s no surprise that the market is trading largely flat given its strong start this year. The TSX index gained 4.2 percent in January.

“The market’s down, but it’s been up the last four or five weeks so there’s a little bit of consolidation,” he said.

Other big names on the downside included Manulife Financial , down 0.3 percent at C$12.30, and Teck Resources , down nearly 1 percent at C$42.99.

$1=$1.00 Canadian Reporting By Jennifer Kwan; Editing by Peter Galloway

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