May 27, 2008 / 8:35 PM / 11 years ago

UPDATE 3-Toronto stocks taken lower by falling resources

(Updates closing numbers, adds details)

*Index ends 1.6 percent lower

*Resource shares decline as commodities tumble

*Financials slide amid quarterly corporate results

TORONTO, May 27 (Reuters) - Tumbling resource shares led the Toronto Stock Exchange’s main index sharply lower on Tuesday, as energy and materials issues took a beating amid skidding commodity prices.

A stronger U.S. dollar prompted a selloff in oil and gold, important underlying commodities for the Toronto benchmark, which is heavily populated with resource companies.

Energy producers led the way down, falling 3.2 percent. Suncor Energy (SU.TO), sagged C$3.09, or 4.3 percent, to C$68.15, while Canadian Natural Resources (CNQ.TO) lost C$2.81, or 2.8 percent, to C$97.94.

The S&P/TSX composite index .GSPTSE closed down 236.44 points, or 1.6 percent, at 14,522.13 with all but one of its 10 main sectors lower.

The materials group shed 2.5 percent, hurt by a downturn in gold producers and other miners. Inmet Mining IMN.TO slid C$1.82, or 2.6 percent, to C$69.50, and Barrick Gold (ABX.TO) was down C$1.52, or 3.6 percent, at C$40.28.

The financial sector also joined in the slide, declining 1.2 percent as major banks began reporting quarterly results.

Bank of Nova Scotia (BNS.TO) dropped 55 Canadian cents, or 1.1 percent, to C$47.65 after it said second-quarter profit fell amid higher provisions for credit losses and lower capital market revenue. But Scotiabank also upped its dividend to 49 Canadian cents a share from 47 Canadian cents.

Bank of Montreal (BMO.TO) also reported lower profit, stung by a weaker capital markets business, while it warned that its provisions for loan losses would rise. Shares of BMO fell C$1.24, or 2.5 percent, to C$47.76

Shares of BCE Inc (BCE.TO) were a bright spot to the index, rebounding C$1.09, or 3.2 percent, to C$34.85 after the Supreme Court of Canada said it may hear an appeal of a lower court decision that has sparked fears over the future of its C$34.8 billion ($35.2 billion) buyout. ($1=$0.99 Canadian) (Reporting by Leah Schnurr; editing by Rob Wilson)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below