May 17, 2010 / 8:34 PM / in 8 years

CANADA STOCKS-TSX sags on euro zone, China concerns

   * TSX ends down 201.97, or 1.68 pct, at 11,813.00
 * Nine of index's 10 main sectors lower
 * Miners lead slide; oils retreat on weak crude
 (Updates to close, adds quotes)
 By Jennifer Kwan
 TORONTO, May 17 (Reuters) - Toronto's main stock index fell
for a third straight session on Monday as oil and metal prices
tumbled on concerns about euro zone debt and weaker growth in
China, knocking commodity issues lower.
 Teck Resources TCKb.TO fell 6.3 percent to C$33.11 and
First Quantum FM.TO sank 6.6 percent to C$64.98 as industrial
metals plummeted. [MET/L]
 "There's concern that the international economies, in
particular China, are slowing down. People extrapolate that to
make the assumption that you're going to see lower commodity
prices," said Irwin Michael, portfolio manager at ABC Funds.
 Toronto's slide came as China's key stock index tumbled
5.07 percent on Monday to its lowest close in a year. That fall
was led by property issues, as retail investors fled the market
after a month-long rout sparked by a severe government
clampdown on surging property prices. [.SSEC] [ID:nTOE64G065]
 Investor sentiment was also bruised by concern that efforts
to tackle the euro zone debt crisis could stifle the global
economic recovery. [MKTS/GLOB]
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended down 201.97 points, or 1.68 percent, at
11,813.00. It slumped as low as 11,695.61, its lowest level in
a week. Nine of the index's 10 main groups were lower.
 A tumble in oil prices hit TSX energy shares, with Suncor
Energy down 2.5 percent to C$31.26, while Canadian Natural
Resources CNQ.TO fell 1.7 percent to C$71.37. [O/R]
 The materials group, home to mining and fertilizer
companies, sank 2.8 percent while energy issues fell 2
 The losses on the TSX were not limited to commodity-linked
issues. Also weighing were financials, down 1.3 percent, and
industrials, which sank 1.7 percent.
 It was the index's third straight session lower.
 "People are edgy. You know the old saying, sell in May and
go away? It's still May," said Michael.
 "Clearly, it looks like it's a bit of a buyers' boycott. A
lot of people are stepping away, not being sure what to do.
When that happens it's a question of supply and demand," he
 In individual company news, Toronto-Dominion Bank TD.TO
sank 1.9 percent to C$71.98 after it said it would buy troubled
U.S. lender South Financial Group Inc TSFG.O for $191.6
million to build on its presence in the U.S. Southeast,
especially Florida. [ID:nSGE64G0HT]
 ($1=$1.03 Canadian)
 (Reporting by Jennifer Kwan; editing by Rob Wilson)

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