August 17, 2009 / 2:48 PM / 10 years ago

CANADA STOCKS-Doubts about economic recovery rattle TSX

 * TSX down 339.98 points, or 3.13 percent, at 10,508.03
 * Slide in commodity prices hits index
 * Financials drop 3 percent on recovery doubt  (Adds details, quote)
 TORONTO, Aug 17 (Reuters) - Toronto’s main stock market index dove on Monday morning as commodity-linked stocks sank with oil and metals prices on worries over the pace of economic recovery.
 Energy, financial, and gold-mining companies led the broad decline as commodity prices slid on worries about the health of of the U.S. consumer that were underlined by below-par results from U.S. home improvement retailer, Lowe’s Cos Inc (LOW.N).
 Also disconcerting the market was data that showed Japan’s economy emerged from its longest recession in at least 60 years in the second quarter, but that the recovery may be shaky. [ID:nSP435211]
 Suncor Energy (SU.TO) sank 4.6 percent to C$34.19, while Canadian Natural Resources (CNQ.TO) tumbled 3.2 percent to C$62.16. Gold miner Barrick Gold (ABX.TO) fell 3.9 percent to C$35.95, while Goldcorp (G.TO) dropped 3.8 percent to C$37.52.
 Canada’s biggest bank, Royal Bank of Canada (RY.TO), fell 2.5 percent to C$50.10.
 The stock market tumble reflects persistent concerns about the “global growth story,” said Francis Campeau, broker at MF Global Canada, in Montreal.
 “That’s why the commodity sectors are getting hit,” he said.
 Oil prices CLc1 fell below $66 a barrel and metals prices dropped sharply on Monday. [ID:nSYD485910]
 At 10:11 a.m. (1411 GMT), the Toronto Stock Exchange S&P/TSX composite index .GSPTSE was down 339.98 points, or 3.13 percent, at 10,508.03, with all of its 10 main groups lower
 Last week, the Toronto index notched its first weekly loss in five weeks, due in part to sluggish U.S. consumer confidence numbers that rattled investor confidence.
 Analysts said the market is also taking a breather after racing up some 40 percent from its March lows. “There could be room for further drop in the short term,” Campeau said.
 ($1=$1.11 Canadian)  (Reporting by Jennifer Kwan; 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