CANADA STOCKS-TSX hits Nov low after Greece downgrade

Mon Jun 13, 2011 2:14pm EDT

* TSX down 147.33 points at 12,936.67

* Index hits lowest level since Nov. 2010

* S&P cuts Greece to CCC, or 8 notches into junk

* Nine of 10 index sectors weaker (Updates to afternoon)

By Claire Sibonney

TORONTO, June 13 (Reuters) - Toronto's main stock market index skidded to its lowest level since November on Monday, breaking below 13,000 after another downgrade of Greece's credit rating and as commodity prices retreated.

Greece's credit rating became the lowest in the world after Standard & Poor's downgraded it by three notches, saying the agency would consider any debt restructuring as a default. [ID:nN13126859]

The news sent oil prices tumbling with U.S. crude oil futures falling more than $3 a barrel, sending Toronto's energy shares down more than 2 percent. [O/R]

Oil company Canadian Natural Resources (CNQ.TO) was the heaviest drag on the index, sinking 2.5 percent to C$38.36, while Suncor Energy (SU.TO) dropped 1.8 percent to C$37.40.

"Investors are extremely nervous at this point in time, even though the news of the Greece downgrade there has been speculation about this for months now," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

Picardo noted that the TSX was lagging Wall Street, with most U.S. stock indices higher on Monday.

"We've been underperforming for many weeks. The problem is that the TSX as a whole tends to be more susceptible to concerns about global growth than the U.S. exchanges," he added, pointing to the index's 50 percent weighting in commodity-driven stocks.

At 1:47 p.m. (1747 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 147.33 points, or 1.13 percent, at 12,936.67, trading at its lowest levels since Nov. 30.

The selloff saw the TSX break through key psychological support at 13,000. Picardo said the next significant level on the downside will be 12,500.

Nine of the the index's 10 main sectors were weaker, including financials, which dipped 0.1 percent. Among bank stocks, Bank of Nova Scotia (BNS.TO) was down 1.5 percent at C$56.75.

Healthcare stocks were up 0.3 percent.

Heavyweight miners were weighed down by softer metal prices. Goldcorp Inc (G.TO) fell 1.9 percent to C$45.31, Silver Wheaton (SLW.TO) plunged 5.2 percent to C$29.83, and First Quantum Minerals (FM.TO) dropped 2.3 percent to C$117.25. [GOL/]

TMX Group (X.TO) rose 0.4 percent to C$43.99 after Maple Group filed a C$3.7 billion hostile takeover bid for the exchange operator. [ID:nN13124543]

($1=$0.98 Canadian) (Reporting by Claire Sibonney; editing by Peter Galloway)

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Comments (1)
gentro wrote:
I find it rather silly to say the least trying to explain why TSX is down with Greece’s downgrading !!!! If Greece has such a power over International stock markets how can you explain that ONLY TSX is down and NONE of the USA stock markets ???

Let’s get serious guys !!!!

Jun 13, 2011 2:25pm EDT  --  Report as abuse
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