August 5, 2011 / 10:00 PM / in 6 years

CANADA STOCKS-TSX tumbles for second session, touches 11-mth low

   * TSX down 217.96 points, or 1.76 percent, at 12,162.17
 * Sees biggest intraday drop since June, 2009
 * Hits lowest level since August 2010
 * Nine of 10 main sectors lower
 * Global growth fears drive losses
 By Trish Nixon
 TORONTO, Aug 5 (Reuters) - Toronto stocks plunged for a
second straight session on Friday, touching their weakest point
since August 2010, as fears of a global recession hammered the
resource-heavy market.
 While U.S. stocks see-sawed, Toronto's main stock index
.GSPTSE at one point fell almost 4 percent, its worst
intraday drop in more than two years.
 The S&P/TSX composite index .GSPTSE ended down 217.96
points, or 1.76 percent, at 12,162.17, led by a 2.46 percent
drop in energy stocks.
 "It's the bias of the index," said Paul Hand, managing
director at RBC Capital Markets, citing the impact of falling
commodity prices on natural resource stocks.
 World stocks fell for an eighth day on Friday in a dizzying
descent that has wiped around $2.5 trillion off the value of
global equities this week, but hopes the European Central Bank
will buy bonds of crisis-hit Italy helped lift markets off the
lows of the day. [MKTS/GLOB]
 Toronto's sell-off followed a steep 3.4 percent drop on
Thursday, the TSX's biggest one-day loss in two years, as
markets worldwide fell prey to fears about slowing economic
growth and the euro zone's debt crisis.
 The index was down more than 6 percent for the week. It has
lost more than 15 percent since March 7, when it touched its
2011 high.
 Friday's intraday fall -- at one point more than 3.9
percent to 11,894.7 -- was the biggest since June 2009. It
marked the lowest level since August 2010.
 "You've got margin selling taking place as well because a
lot of people borrow money to buy stocks, and all these
broker/dealers are watching what the situation is," said Fred
Ketchen, director of equity trading at ScotiaMcLeod.
 After energy, financial stocks, down 1.37 percent and
materials shares including miners, off 1.62 percent, played the
biggest roles in leading the market lower.
 Toronto Dominion Bank TD.TO was the most influential
decliner, down 2.2 percent to C$73.85, followed by Magna
International MG.TO. The auto-parts giant tumbled 11.8
percent to C$38.8 after posting a a drop in second-quarter
profit on a weak performance in Europe and cutting its profit
margin outlook. [nN1E7740QO]
 Suncor Energy SU.TO was the No. 3 decliner. It slid 2.4
percent to C$32.34, taking its lead from volatile U.S. crude
futures. [O/R]
 Further weighing on the Toronto exchange, shares of Yellow
Media Inc YLO.TO continued to slide, falling 12.7 percent to
96 Canadian cents after analysts cut their price targets on the
Canadian phone directory publisher, which is struggling to make
a transition to digital media. [ID:nN1E7741BI]
 Canada's top engineering company SNC Lavalin Group SNC.TO
fell 5.28 percent to C$49.32 after reporting a 16 percent drop
in quarterly profit on Friday dragged by lower contributions
from its infrastructure segments. [ID:nNL3E7J53MM]
 Positive North American jobs data did little to curb global
growth fears. U.S. job growth accelerated more than expected in
July, while the Canadian unemployment rate fell in July to its
lowest level since December 2008. [ID:nN1E77404O]
 Still, some analysts thought the market may be close to
reaching a near-term bottom.
 "We're definitely at the point of what we call 'major
oversold'" said Ron Meisels, technical analyst and president of
Phases & Cycles.
 "12,000 is roughly speaking the level at which the market
peaked in the summer of 2010. The top of a major rally very
often will provide the support for a subsequent sell-off and
therefore 12,000 is a logical place to be looking for
 Nine of the index's 10 main groups were lower, barring the
telecoms sector, which was helped by strong results from Telus
Corp T.TO.
 The Canadian telecoms company reported a rise in quarterly
net profit and increased its revenue forecast for the year.
Telus shares were up 0.68 percent to C$51.63. [ID:nN1E7731K2]
 Some bright spots were also found among gold miners as the
price of the precious metal resumed its five-week rally.
 Goldcorp G.TO was the most influential gainer on the
index, up 1.1 percent at C$45.37, while Agnico Eagle AEM.TO
climbed 1.96 percent to C$55.22.
 (With additional reporting by Claire Sibonney; Editing by
Jeffrey Hodgson)

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