November 22, 2010 / 10:39 PM / 8 years ago

CANADA STOCKS-Financials, energy issues drag TSX lower

   * TSX down 27.32 points, or 0.21 pct, at 12,929.01
 * Seven of the 10 main groups higher
 By Solarina Ho
 TORONTO, Nov 22 (Reuters) - Toronto’s main stock index finished lower on Monday as weakness in heavily weighted energy and financial issues offset gains in most other sectors.
 The financial group was down 0.8 percent, with Royal Bank of Canada (RY.TO) down 0.89 percent at C$54.83. Bank of Nova Scotia (BNS.TO), which agreed to buy the 82 percent of DundeeWealth DW.TO it does not already own for C$2.3 billion, was down 0.82 at C$54.20. [ID:nN22123999]
 Manulife Financial Corp (MFC.TO) shares were off 3.06 percent at C$14.88 after Citigroup downgraded Canada’s largest insurer to “sell”, citing a weak outlook for its U.S. operation and the risk of dilution from further equity issuance. [ID:nSGE6AL0OV] Sun Life Financial (SLF.TO) also fell, slipping 1.17 percent to C$28.62.
 Energy issues slid 0.8 percent, in step with falling oil prices. Crude futures fell against a stronger U.S. dollar and on worries about European sovereign debt levels.
 Canadian Natural Resources (CNQ.TO) fell 1.28 percent to C$38.97 while Suncor Energy (SU.TO) dropped 1 percent to C$34.89. Encana Corp (ECA.TO) was off 1.06 percent at C$28.95.
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE finished down 27.32 points, or 0.21 percent, at 12,929.01. Seven of the TSX’s 10 main groups were higher.
 Industrials were also down, falling 0.5 percent.
 Higher gold prices helped lift the materials group, home to miners, by 0.68 percent. Barrick Gold (ABX.TO) rose 0.73 percent to C$51.08, while Kinross Gold (K.TO) climbed 1.1 percent to C$18.43.
 Shares of junior miner Potash One KCL.TO jumped 25.14 percent to C$4.53 on news that German fertilizer producer K+S AG was buying it for C$434 million. [ID:nLDE6AL1DM]
 The TSX spent most of the day in the red, and a late session rally was not enough to bring it into positive territory again.
 “I think we’re going to see a lot of that this week    ... Markets are going to drift aimlessly,” said Bruce Latimer, a trader at Dundee Securities.
 “It’s off its bottom; there’s just not a lot of commitment out here today on the market. (Investors) also want to see how the Irish situation sorts itself out.”
 Europe’s ongoing debt worries dampened market sentiment and a shortened trading week due to Thursday’s U.S. Thanksgiving holiday kept many investors on the sidelines.
 In Europe, Ireland’s unpopular coalition government began to unravel on Monday, a day after agreeing to a multibillion-euro bailout package, raising doubts it will be able to push through an austerity budget crucial to receiving financial aid. [ID:nLDE6AL00M]
 In individual company news, Lululemon Athletica LLL.TO jumped to its higher close ever, up 5 percent at C$54.00, after Oprah Winfrey touted its yoga wear on her television show. [ID:nN22288564]
 Technology licensing firm Wi-Lan Inc WIN.TO, which said it launched a patent infringement lawsuit against a number of U.S. companies including Comcast Corp (CMCSA.O) and Time Warner Cable Inc TWC.N, was down 1.31 percent at C$4.53.
 ($1=$1.02 Canadian)  (Reporting by Solarina Ho; editing by Rob Wilson)                                        

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