March 6, 2012 / 3:48 PM / in 6 years

CANADA STOCKS-TSX dives as fears about growth, Greece mount

* TSX slides 191.45 points to 12,332.50

* Nine of index’s 10 major sectors lower

* Bank of Nova Scotia slips after results

By Jennifer Kwan

TORONTO, March 6 (Reuters) - Toronto’s main stock index tumbled on Tuesday morning as fears mounted that the global growth outlook is darkening and that Greece may not be able to complete a major debt restructuring deal this week.

The resource-heavy index joined global markets in a sharp fall on the lingering impact of gloomy euro-zone economic data on Monday and of China’s move to lower its economic growth forecasts. The index’s big materials and energy sectors fell by 2.9 percent and 2.3 percent, respectively, as commodity prices slid on concerns about the demand outlook.

Leading the index lower was Suncor Energy, which sank 3.2 percent to C$33.71. Fellow oil company Canadian Natural Resources tumbled 1.7 percent to C$35.00. On the mining side, Goldcorp dropped 2.7 percent to C$46.36, and Teck Resources fell 3 percent to C$35.12.

“We sure got clobbered on the commodity side yesterday and I think this is just a follow on,” said Douglas Davis, vice chairman at Davis-Rea. “The concern is that resource prices will drop and volume of shipments will drop, and altogether it would cause profitability to decline for these companies.”

Fears were also intensifying about whether Greece will be able to complete a private-sector debt swap by late Thursday so that it can receive a 130 billion euro bailout and meet bond repayments due by March 20, which would allow it to avoid default. Those concerns helped to push European shares to a one-week low and the euro also fell.

At 10:10 a.m. (1510 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 191.45 points, or 1.5 percent, at 12,332.50, with all of but one of the index’s 10 main sectors lower. Telecoms were up just 0.03 percent.

Bank of Nova Scotia’s shares were down 0.7 percent at C$53.36 after the bank reported its first-quarter profit rose 15 percent, mainly helped by stronger trading revenue. Canada’s No. 3 bank said it targeted growth in earnings per share of 5 percent to 10 percent in 2012.

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