CANADA STOCKS-TSX drifts lower on market pessimism

Mon Jun 13, 2011 10:53am EDT

* TSX down 16.12 points at 13,067.88

* Seven of 10 sectors weaker (Updates with details, commentary)

By Claire Sibonney

TORONTO, June 13 (Reuters) - Toronto's main stock index drifted lower on Monday on worries over the outlook for the global economy, though losses were limited as bargain-hunters sought deals after the TSX hit a six-month low on Friday.

Energy shares were the heaviest drag on the index, falling 0.6 percent as U.S. crude prices dipped as increasing signs of a global slowdown prompted risk aversion. [O/R]

Canadian Natural Resources (CNQ.TO) lost 0.9 percent to C$39.00, while Canadian Oil Sands Trust (COS.TO) dropped 1.3 percent to C$28.59.

"There is little if any news recently that is going to cause anybody to get excited about the market, and as long as that's the case, you've got nothing to go on," said Fred Ketchen, director of equity trading at ScotiaMcLeod.

At 10:31 a.m. (1431 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 16.12 points, or 0.12 percent, at 13,067.88.

Seven of the 10 main sectors were weaker, including financials, which dipped 0.1 percent. Royal Bank of Canada (RY.TO), down 0.6 percent at C$54.02, was the top decliner.

Ketchen noted that the TSX is still down almost 3 percent for the year, while U.S. indexes are up, despite six straight weeks of losses.

"(Investors) look at spotty economic recovery and it is spotty for the most part -- it's not a disaster -- but at the same time we would like to see it a little more on the stronger side."

Influential gold miners were off slightly, weighed down by softer bullion prices. Goldcorp Inc (G.TO), retreated 0.1 percent to C$46.17. [GOL/]

Bickering between euro zone policymakers over the Greek debt crisis also hurt market sentiment.

European policymakers appeared deadlocked on how private investors could be involved in some form of restructuring of Greek debt.

TMX Group (X.TO) rose 1.4 percent to C$44.41 after Maple Group filed a C$3.7 billion hostile bid for the exchange operator. [ID:nN13101866] (Reporting by Claire Sibonney; editing by Rob Wilson)