June 10, 2011 / 2:59 PM / 8 years ago

CANADA STOCKS-Global slowdown fears drag TSX near 6-month low

* TSX down 141.67 points at 13,114.07

* Index hits near 6-month low, all 10 sectors lower

* Commodity prices, down more than 1 pct, weigh (Updates with details, commentary)

By Claire Sibonney

TORONTO, June 10 (Reuters) - Toronto’s main stock index hit its lowest in nearly six months on Friday in a broad decline driven by weaker commodities, concerns about a slowing global economy and Europe’s ongoing struggle with Greece’s debt crisis.

Energy shares played the biggest role in leading the market lower, falling 1.3 percent as U.S. crude oil prices slipped. Saudi Arabia began offering more oil to Asian refiners, easing worries about supply following an inconclusive OPEC meeting. [O/R]

Suncor Energy (SU.TO), the most influential decliner, dropped 1.7 percent to C$38.16, while Cenovus Energy (CVE.TO) lost 1.9 percent to C$33.93.

Materials, which include influential mining stocks, were down 1.5 percent, dragged down by softer metal prices. Copper fell after disappointing trade data from China, while gold succumbed to a stronger U.S. dollar on renewed Greek debt fears. [MET/L] [GOL/]

Goldcorp Inc (G.TO) fell 1.7 percent to C$45.60, while Teck Resources TCKb.TO shed 1.8 percent to C$46.65.

“It looks like a lot of investors are fairly apprehensive over the last few weeks and going into the weekend. We’ve seen a bit of a slowdown in some economic indicators and that’s given a lot of investors a good reason for some caution and a pause,” said Youssef Zohny, portfolio manager at Van Arbor Asset Management in Vancouver.

At 10:28 a.m. (1428 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 141.67 points, or 1.1 percent, at 13,114.07. Earlier, the index fell to 13,101.37, its weakest since Dec. 17.

All of its 10 sectors were weaker, including financials, down 1 percent. Toronto-Dominion Bank (TD.TO) was the second heaviest laggard in the index, off 1.2 percent at C$78.82.

Global economic concerns overshadowed data showing solid Canadian job growth that initially helped firm the Canadian dollar. [ID:nN10228750]

Investors received mixed messages about the progress of debt assistance to Greece, with Germany sticking to its demand that private investors contribute to a second bailout even after renewed ECB opposition to any investor participation that might be deemed involuntary. [nLDE7590LU] [nLDE7581Z8]

“Whenever you get into this gap between earnings seasons, which is not until next month, you do get a few of these overseas concerns influencing markets,” said Zohny.

“Europe continues to be a concern and Asia with their monetary tightening and inflation fighting versus growth, it’s also something that investors worry about.”

Sino-Forest TRE.TO was down 8 percent to C$4.74 following a two-day rally. Allegations of fraud against the China-focused forestry company have set off a battle royal between analysts who have long supported Sino-Forest and the short-seller whose recent accusations have pummeled its shares. [ID:nN09280131] (Editing by Jeffrey Hodgson)

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