June 11, 2013 / 9:21 PM / 6 years ago

CANADA STOCKS-TSX dives as stimulus worries hit resource shares

* TSX down 159.10 points, or 1.28 percent, at 12,223.57
    * Materials and energy shares lead market slide
    * Bank of Japan withholds further stimulus
    * Kinross halts Ecuador project; Lululemon CEO steps down

    By Peter N Henderson
    TORONTO, June 11 (Reuters) - Canada's main stock index fell
sharply on Tuesday in a broad selloff led by materials and
energy shares following signs that global central banks are
moving away from monetary stimulus.
    The biggest drag on the market was integrated energy company
Suncor Energy Inc, which fell 2.3 percent to C$31.07.
Other big energy losses included TransCanada Corp's,
1.5 percent fall to C$46.12.
    Nine of the 10 main subgroups of the TSX index ended the day
    The wide selloff was sparked by the Bank of Japan, which did
not to take any fresh measures on Tuesday to tackle rising
government bond yields, which threaten to thwart its $1.4
trillion stimulus program. 
    That announcement followed recent remarks by U.S. Federal
Reserve Chairman Ben Bernanke that signaled a possible slowdown
in the Fed's asset-buying program in the coming months.
    "The selloff today is a reflection of concerns around
reducing monetary policy stimulus around the world," said Craig
Fehr, Canadian market strategist at Missouri-based investment
firm Edward Jones. "It's more about rhetoric than action, there
isn't a tremendous amount of economic data. We're just seeing
knee-jerk reactions from the market."
    The Toronto Stock Exchange's S&P/TSX composite index
 ended the day down 159.10 points, or 1.28 percent, at
    The decline was mirrored by equity markets globally, along
with falls in the price of commodities and the value of the U.S.
    The TSX index's materials group was hit by weakness in the
gold sector. Barrick Gold Corp dropped 3.9 percent to
C$19.99, and Goldcorp Inc fell 3.1 percent to C$28.27.
    Kinross Gold Corp was down 6.4 percent at C$6.03
after the company announced it had halted development at a gold
project in Ecuador. 
    Shares in financial firms also swooned in the wake of the
Bank of Japan announcement, with shares in the Royal Bank of
Canada showing the biggest drop, 1.2 percent, to
C$59.42. Toronto-Dominion Bank lost nearly 1 percent to
close at C$81.67, while Bank of Nova Scotia lost 0.9
percent to C$56.86.
    Yogawear maker Lululemon Athletica Inc fell more
than 17.6 percent after saying its chief executive was stepping
down. It closed at C$69.22.
    One bright spot was Catamaran Corp, a pharmacy
benefits manager. Shares in the company surged more than 10
percent to C$54.91 after major U.S. health insurer Cigna Corp
 said the pair had signed a 10-year agreement.
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