October 21, 2010 / 6:47 PM / 8 years ago

CANADA STOCKS-TSX deepens decline as resources drag

 * TSX falls 0.53 percent to 12,582.86
 * Nine of 10 sectors lower, led by resources  (Adds details)
 TORONTO, Oct 21 (Reuters) - Toronto’s resource-heavy main stock index slid on Thursday afternoon, pulled down by a selloff in commodity prices as investors worried about the sluggish pace of the U.S. recovery despite another round of strong U.S. corporate earnings.
 Key decliners included Suncor Energy (SU.TO), down 1.8 percent at C$33.65, and Kinross Gold (K.TO), which shed 3.39 percent to C$17.96. Toronto-Dominion Bank (TD.TO) fell 1 percent to C$75.22, while Encana (ECA.TO) dropped 2.4 percent to C$28.42.
 At 2:25 p.m. (1825 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 67.06 points, or 0.53 percent, at 12,582.86. Nine of the index’s 10 main groups were lower.
 U.S. dollar-denominated commodity prices extended declines, accelerated by a rebound in the U.S. greenback, sending the index’s materials group down 1.3 percent and its energy sector off 0.7 percent.
 A batch of new U.S. data on Thursday painted a picture of an economy stuck in slow-growth mode, reinforcing views that the U.S. Federal Reserve will ease monetary policy further next month to try to reinvigorate the recovery. [ID:nN21275986]
 “There’s still a lot of indecision in this market. The macroeconomic picture is not as bright as what we’d want it to be and yet the corporate picture still looks reasonably strong with all these companies coming out with respectable earnings and guidance,” said Gareth Watson, Canadian equity advisor in the Portfolio Advisory Group at ScotiaMcLeod.
 “At some point that divergence...has to come into play.”
 Potash Corp POT.TO was a stock to watch on Thursday as the Saskatchewan government was set to reveal its recommendation on BHP Billiton’s hostile bid for the fertilizer company, which is based in the province. Potash Corp was unchanged at C$145.90. [ID:nN20221123]
 ($1=$1.03 Canadian)  (Reporting by Ka Yan Ng; editing by Peter Galloway)                                        

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