June 7, 2011 / 9:58 PM / 8 years ago

CANADA STOCKS-TSX extends slide as resources, financials weigh

   * TSX down 35.74 points, or 0.27 percent at 13,282.92
 * Five of 10 main groups lower, telecoms flat
 * Ends down for sixth session in row  (Updates with details, comments)
 By Solarina Ho
 TORONTO, June 7 (Reuters) - Toronto’s main stock index finished lower on Tuesday, as resource and financial issues helped extend the market’s slide for a sixth straight session.
 The materials sector was down 0.84 percent with Sino-Forest TRE.TO the group’s biggest decliner. The beleaguered company saw its shares plunge another 34.26 percent to C$4.01 as the Chinese timber plantation operator continued to fight allegations that its finances are a fraud. [ID:nL3E7H71M3]
 Miner Goldcorp (G.TO) was off 1.24 percent at C$46.82 while Barrick Gold (ABX.TO) slipped 0.87 percent to C$44.24. The overall gold subgroup was down 0.7 percent, with precious metal prices little changed on Tuesday as fewer investors flew to the safe-haven investment. [GOL/]
 The financial sector, which along with the materials group helps make up more than 50 percent of the index, was down 0.47 percent. Toronto-Dominion Bank (TD.TO) was the second biggest drag on the TSX, falling 0.76 percent to C$79.60.
 “We’re just following global markets, with the U.S. setting the tone. We opened a little stronger and then we see-sawed back and forth before fading away into the close,” said Levente Mady, market strategist at Union Securities in Vancouver.
 “Certainly it seems like the commodities-related sectors are taking a bit of a breather along with the financials.”
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed down 35.74 points, or 0.27 percent at 13,282.92, its sixth lower close in a row. The TSX is down about 1.2 percent for the year.
 Five of the index’s 10 main sectors were lower, while telecoms ended the session flat.
 Tech issues slumped 1.03 percent, pressured by Research In Motion RIM.TO, which slid 3.12 percent to C$36.92 making it the biggest negative weight on the index.
 Analysts have cut their price targets in recent days as the BlackBerry maker remains under intense pressure from Apple’s (AAPL.O) iPhone and smartphones running Google’s (GOOG.O) Android operating system.
 The TSX could not sustain session rebounds and gyrated between positive and negative territory throughout the day.
 A string of disappointing U.S. economic data in recent weeks has sparked further concerns about the spillover effect from Canada’s biggest trading partner and tempered investor sentiment.
 Sentiment was further dampened after Federal Reserve Chairman Ben Bernanke acknowledged a slowdown in the U.S. economy, though he did not suggest further monetary stimulus to spark growth. [ID:nN07142566]
 “I’m looking for a little bit of a bounce for the next couple of days before we see more selling pressure. I was hoping we’d get more of a bounce today, but it didn’t happen,” said Mady.
 Energy stocks were among the few solid gainers, rising 0.33 percent. Talisman Energy TLM.TO rose 2.53 percent to finish at C$19.47. Energy issues tracked oil prices, which rose on a weaker U.S. dollar and geopolitical conflict in the Middle East. [O/R]
 In corporate news, Saputo Inc (SAP.TO) slid 1.29 percent to C$46.50. The dairy company posted higher quarterly profits, but a highly competitive market in Canada and an investment writedown partially offset better results from the U.S. market. [ID:nN07130738]
 ($1=$0.97 Canadian)  (Editing by Rob Wilson)                                        

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