CANADA STOCKS-Banks, energy drag TSX lower; growth fears rise

Thu Jun 23, 2011 5:44pm EDT

   * Index down 80.98 points, or 0.62 pct, at 12,979.58
 * Eight of 10 main sectors weaker, led by financials
 * RIM, Teck, TMX Group push higher
 (Recasts with closing prices, adds comments)
 By Trish Nixon
 TORONTO, June 23 (Reuters) - Toronto's main stock market
index ended lower on Thursday as a sharp drop in oil prices and
growing concern about the outlook for the global economy hurt
financial and energy shares.
 Financials were the biggest drag on the index, led by
Toronto-Dominion Bank (TD.TO), down 1.5 percent at C$78.50,
Royal Bank of Canada (RY.TO), down 1.3 percent at C$53.82, and
Bank of Nova Scotia (BNS.TO) off 1.2 percent at C$57.25.
 Energy shares, down 1.1 percent, also weighed after oil
prices hit a four-month low. Crude fell after the United States
and International Energy Agency said they would release 60
million barrels of oil from strategic stockpiles to help spur
the global economy. [O/R]
 "It's the usual suspects here," said John Kinsey, portfolio
manager at Caldwell Securities Ltd. "Oil is down almost $4 a
barrel, energy stocks are down. The gold stocks had been
lagging, and just when it looked like maybe they were going to
do something they are getting trashed today."
 Miners Barrick Gold Corp (ABX.TO), down 1.35 percent at
C$42.98, and Goldcorp Inc. (G.TO), off 1.14 percent at C$47.59
rounded off the top 5 decliners.
 Gold fell 2 percent on Thursday, its biggest one-day drop
in more than a month, after disappointing U.S. job data hit
investor risk appetite and boosted the U.S. dollar's safe-haven
appeal. [GOL/]
  The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 80.98 points, or 0.6 percent, at
12,979.58. The index fell as low as 12,838.81 early in the
session.
 "On a technical basis, it was already oversold so we're
actually seeing a bounce from above (recent) lows and that
technically is a very encouraging sign," said Don Vialoux,
technical analyst at JovInvestment Management Inc.
 Vialoux said the year-to-date low of 12,763.54 reached on
Monday should continue to provide near-term support for the
next month or so.
 Helping to offset the decline in the main index was
Research In Motion's RIM.TO 5.5 percent rise to C$29.14.
 The BlackBerry maker's shares have benefited this week from
bargain-hunting and increased speculation that the sharp fall
in its stock price could make it a more attractive takeover
target.
 Teck Resources (TCKb.TO), which has also seen its share
price decline in recent weeks, was the second most influential
gainer, up 3.1 percent at $45.54.
 "It kind of looks like people are bottom fishing on some of
these stocks." added Kinsey.
 TMX Group Inc (X.TO) shares rose 2.37 percent to C$45.30
after the Maple Group consortium of Canadian banks and pension
funds raised its hostile takeover bid for the operator of the
Toronto Stock Exchange on Wednesday. [ID:nN1E75L17E]
 ($1=$0.98 Canadian)
 (With additional reporting by Claire Sibonney and writing by
Jeffrey Hodgson; editing by Rob Wilson)







































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