• Most Popular
  • Most Shared

CANADA STOCKS-TSX dives on doubts about global recovery

Mon Jul 6, 2009 11:16am EDT

Stocks

   

* TSX down 3.26 percent at 9,951.57

Stocks  |  Global Markets

* Energy sector falls 5.08 percent as oil price drops

* Materials sector down 4.96 percent on lower metals prices (Adds details, quote)

By Nina Lex

TORONTO, July 6 (Reuters) - Toronto's main stock index was sharply lower on Monday morning as concerns about the pace of global economic recovery as well as weak commodity prices sent the resource-heavy index to its lowest level in more than a week.

The TSX index's energy sector fell 5.08 percent as the price of oil sank to around $64 a barrel. Petro-Canada PCA.TO shares fell 7.58 percent to C$38.40, Suncor Energy (SU.TO) was down 7.7 percent at C$30.30, and EnCana Corp(ECA.TO) was down 4.23 percent at C$53.01.

The index's materials group also weighed heavily on the index, falling 4.96 percent on lower metals prices. Miner Iamgold (IMG.TO) dropped 6.66 percent to C$11.35, and Barrick Gold (ABX.TO) was down 4.56 percent at C$37.91. Fertilizer producer Potash Corp (POT.TO) was down 5.02 percent at C$107.61.

At 10:45 a.m. (1445 GMT), the S&P/TSX composite index .GSPTSE was down 334.88 points, or 3.26 percent, at 9,951.57. All of its 10 main groups were lower.

Analysts said investors remain concerned about the outlook for global economic recovery.

"I think maybe we are going to get the correction a lot of people have been looking for," said John Kinsey, portfolio manager at Caldwell Securities Ltd.

"The unemployment numbers last week were worse than people thought and that acted as catalyst last week and that seems to follow through today."

U.S. jobs data last Thursday, which showed the economy shed more jobs than expected in June, dampened investor hopes that the global economy is poised to recover.

($1=$1.16 Canadian) (Reporting by Nina Lex; editing by Peter Galloway)



More from Reuters

Joint Terminal Attack Controller SSgt Clinton J. Herbison, a U.S. Airman from the 817 Expeditionary Air Support Operations Squadron (EASOS) takes a break during a night mission near Honaker Miracle camp at the Pesh valley of Kunar Province August 12, 2009. Credit: REUTERS/Carlos Barria

Pictures of the Year

A look at the best photos of 2009.  Slideshow 

    The Dalai Lama jokes with a nasal spray after being asked his opinion on the swine flu during a press conference after his first lecture in Lausanne, Switzerland, August 4, 2009. REUTERS/ Valentin Flauraud

    What a wacky year it's been...

    Um, what's up the Dalai Lama's nose? "Oddly Enough" editor Bob Basler rounds up the goofiest photos of the year.  Full Article 

    A caution sign is seen next to a stock board at the Australian Securities Exchange (ASX) in Sydney September 5, 2008. REUTERS/Daniel Munoz
    Political Risk in 2010:

    Don't say we didn't warn you

    With the financial crisis (mostly) in the past, U.S. investors are eying a fresh start to the coming year. Here's a look at what speedbumps lie ahead.  Full Article