March 9, 2010 / 9:40 PM / 9 years ago

CANADA STOCKS-TSX drops as economic worry hits resources

 * TSX drops 45.13 points, or 0.38 percent, to 11,918.71
 * Energy, materials shares lead TSX lower
 * Scotiabank falls 1.4 pct despite profit rise  (Updates to close, adds quote)
 By Jennifer Kwan
 TORONTO, March 9 (Reuters) - Toronto’s main stock market index fell for a second straight session on Tuesday as weaker oil and gold prices pulled resource shares lower, while most bank stocks also dropped.
 The index’s materials sector, home to mining and fertilizer shares, dropped 0.8 percent as bullion and metals prices slipped on rising risk aversion fueled by sovereign debt worries. [GOL/] The oil and gas group fell 0.6 percent as oil prices dropped on concerns about economic recovery that also sparked buying of the safe-haven U.S. dollar. [O/R]
 Barrick Gold (ABX.TO) fell 0.7 percent to C$40.54, and Teck Resources TCKb.TO dropped 1.3 percent to C$41.04. Potash Corp of Saskatchewan POT.TO fell 0.8 percent to C$120.36. Suncor Energy (SU.TO) slid 2 percent to C$31.39.
 Also weighing on the Toronto index was the heavyweight financial sector, down 0.5 percent, with Royal Bank of Canada (RY.TO) falling 1.1 percent to C$57.96.
 Bank of Nova Scotia (BNS.TO) slipped 1.4 percent to C$49.42 even after it beat market expectations by reporting a profit rise of 17 percent in the first quarter as domestic banking earnings surged and loan losses were lower than anticipated. [ID:N08126522].
 “I’d say the weakness we’re seeing today could possibly be on account of some profit-taking in the financial group, specifically bank stocks, which have been tremendous performers in recent weeks,” said Elvis Picardo, analyst and strategist at Global Securities in Vancouver
 The S&P/TSX composite index .GSPTSE finished the day down 45.13 points, or 0.38 percent, at 11,918.71, with seven of its 10 main groups lower.
 The index briefly popped into positive territory at midday as oil and gold prices steadied, recovering some early losses in the heavyweight resource sectors. [O/R] [GOL/]
 But losses accelerated again in the afternoon as nervousness about the economic outlook drew investors toward safer-haven instruments. [FRX/]
 ($1=$1.03 Canadian)  (Reporting by Jennifer Kwan; editing by Peter Galloway)                                      

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