CANADA STOCKS-TSX slips as Europe worries weigh, miners fall

Mon Nov 26, 2012 11:58am EST

* TSX down 62.62 points, or 0.51 percent, at 12,150.62
    * Greek talks, Catalonia election stir continued uncertainty
    * Gold miners, energy firms lead broad fall

    By Alastair Sharp
    TORONTO, Nov 26 (Reuters) - Canadian stocks slipped on
Monday, led lower by heavyweight energy, mining and banking
shares as the rise of separatism in Spain and uncertainty over
aid for debt-burdened Greece as policymakers met yet again to
reach a deal cast a cloud over sentiment.
    All 10 of the exchange's main sectors traded lower by late
morning, with gold miners among the biggest drags on the index
as bullion slipped from a one-month high. 
    Barrick Gold Corp fell 1.4 percent to C$34.70 and
Goldcorp Inc was off 0.7 percent at C$40.49.
    "Oil is down as well, so our commodity stocks are weakish,
and that hurts us because they're so heavily weighted in the
index," said John Kinsey, portfolio manager at Caldwell
Securities.
    Cenovus Energy Inc shed 1.6 percent to C$32.90 and
Suncor Energy lost 0.5 percent to C$33.27. 
    At 11:17 a.m. (1617 GMT) the Toronto Stock Exchange's
S&P/TSX composite index was down 62.62 points, or 0.51
percent, at 12,150.62. It had hit a two-week high on Friday.
    In Spain, separatists in Catalonia won a large majority in
regional elections, fueling fears that Spain could split apart
and underscoring the backlash against the country's austerity
measures.
    "Catalonia had a bunch of separatists take over saying they
want to leave Spain," said Gavin Graham, president at Graham
Investment Strategy, adding that the uncertainty over reaching a
deal in Greece contributed to worries.
    Euro zone finance ministers and the International Monetary
Fund began their third attempt in as many weeks to release
emergency aid for Greece on Monday. 
    "The political situation in Europe is not resolved," said
Graham. "And yet even if the Greek situation does come to a
solution, it will lead to more austerity, which has led to 50
percent youth unemployment and 25 percent overall in countries
like Greece and Spain." 
    In addition, if Greece were to exit the EU, Graham said,
investors might expect the same from Spain and Portugal, which
would then reverberate through the French and German banks that
have huge exposure to those countries' sovereign debt.
    Also weighing on the market was the announcement that Bank
of Canada Governor Mark Carney will leave that role to head the
Bank of England next year.     
    SNC-Lavalin Group Inc shares slipped 3.2 percent to
C$40.20. A former executive of the construction company has been
indicted in Switzerland on allegations he laundered money,
according to media reports. 
    Private equity firm Onex Corp slipped 1.1 percent
after it said it will buy U.S.-based insurance broker USI for
$2.3 billion.
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