July 6, 2009 / 3:20 PM / in 8 years

CANADA STOCKS-TSX dives on doubts about global recovery

* TSX down 3.26 percent at 9,951.57

* Energy sector falls 5.08 percent as oil price drops

* Materials sector down 4.96 percent on lower metals prices (Adds details, quote)

By Nina Lex

TORONTO, July 6 (Reuters) - Toronto’s main stock index was sharply lower on Monday morning as concerns about the pace of global economic recovery as well as weak commodity prices sent the resource-heavy index to its lowest level in more than a week.

The TSX index’s energy sector fell 5.08 percent as the price of oil sank to around $64 a barrel. Petro-Canada PCA.TO shares fell 7.58 percent to C$38.40, Suncor Energy SU.TO was down 7.7 percent at C$30.30, and EnCana CorpECA.TO was down 4.23 percent at C$53.01.

The index’s materials group also weighed heavily on the index, falling 4.96 percent on lower metals prices. Miner Iamgold IMG.TO dropped 6.66 percent to C$11.35, and Barrick Gold ABX.TO was down 4.56 percent at C$37.91. Fertilizer producer Potash Corp POT.TO was down 5.02 percent at C$107.61.

At 10:45 a.m. (1445 GMT), the S&P/TSX composite index .GSPTSE was down 334.88 points, or 3.26 percent, at 9,951.57. All of its 10 main groups were lower.

Analysts said investors remain concerned about the outlook for global economic recovery.

“I think maybe we are going to get the correction a lot of people have been looking for,” said John Kinsey, portfolio manager at Caldwell Securities Ltd.

“The unemployment numbers last week were worse than people thought and that acted as catalyst last week and that seems to follow through today.”

U.S. jobs data last Thursday, which showed the economy shed more jobs than expected in June, dampened investor hopes that the global economy is poised to recover.

$1=$1.16 Canadian Reporting by Nina Lex; editing by Peter Galloway

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below