August 19, 2010 / 2:31 PM / 9 years ago

CANADA STOCKS-TSX drops on weak data, golds offset

* TSX falls 0.27 percent to 11,749.85

* Weak data raises worries about world economy

* Materials rise on golds, Potash (Adds details)

By Ka Yan Ng

TORONTO, Aug 19 (Reuters) - Toronto’s main stock index fell on Thursday morning after weaker-than-expected economic data underscored the fragility of the global recovery.

Early data showed initial U.S. jobless claims unexpectedly rose last week. Data for Canadian wholesale trade for June and the leading indicator for July came in lower than expected. [ID:nSCLJJE64O] [ID:nSCLJJE64P] [ID:nN18197408]

“Some weak employment numbers in the U.S. and a very disappointing wholesale data in Canada has been putting the Canadian market under pressure,” said Francis Campeau, broker at MF Global Canada in Montreal.

The losses mounted after the Philadelphia Federal Reserve’s business index for August fell unexpectedly. [ID:nEAP104J00]

At 10:15 a.m. (1415 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was off 31.23 points, or 0.27 percent, at 11,749.85 after opening higher.

Eight of the index’s 10 main groups were under pressure, with steep losses in energy and financials, down about 0.5 percent each.

Among key decliners were Toronto-Dominion Bank (TD.TO), off 0.65 percent at C$70.82, and Suncor Energy (SU.TO), down 0.72 percnet at C$33.05.

Gold-mining stocks were supported by gold prices that climbed to their highest level since July 1 at $1,233.35 an ounce, helping offset some of the overall market’s weakness. Barrick Gold (ABX.TO) rose 1.12 percent to C$47.02 and Kinross Gold (K.TO) gained 2.5 percent to C$16.32.

Takeover target Potash Corp. POT.TO was up slightly, rising 0.33 percent to C$152.25 as investors held hope for a sweeter offer to emerge after pushing the stock up 30 percent since Tuesday.

Overall, the index’s materials sector, home to gold miners and Potash Corp, was up 0.52 percent.

The index’s infotech group surged 2.4 percent, bolstered by news that chip maker Intel has agreed to buy security technology firm McAfee for about $7.68 billion in cash in an effort to boost its security offerings. [ID:nN19252526]

$1=$1.04 Canadian Reporting by Ka Yan Ng; editing by Peter Galloway

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