June 4, 2012 / 8:42 PM / 7 years ago

CANADA STOCKS-TSX stumbles on weak bank, energy shares

 (Updates to close)	
 * TSX touches low of 11,209.55, weakest since Oct. 5
 * Seven of index's 10 subsectors retreat
 * RIM shares slide 6 percent
 By Jennifer Kwan	
 TORONTO, June 4 (Reuters) - Canadian stocks stumbled on
Monday as investor fears about a slowing global economic outlook
weighed on financial and energy issues, pushing the benchmark
index to its lowest intraday level in nearly eight months.	
 Extending June's weak start, the Toronto main stock index
touched 11,209.55, its weakest level since Oct. 5, on broader
worries about the financial stability of the euro zone, as well
as economic weakness in United States and China.	
 The latest North American data to fan fears about slowing
global growth was a government report on orders for U.S. factory
goods, which fell in April for the third time in four.
 The data added to Friday's gloom after a Labor Department
report showed U.S. job creation slowed in May for the fourth
straight month. An industry report said the pace of growth in
manufacturing slowed modestly in May.	
 "There are definitely concerns of more of a unified
slowdown," said Rick Meslin, head of Canadian equities at UBS.	
 "What were individual concerns now seem to be playing out
into a more global phenomenon with China slowing, the United
States slowing and maybe the recovery is stalling."	
 The index's key financial sector led the way lower, dropping
0.6 percent. Big names on the downside included Toronto-Dominion
Bank, down by 0.5 percent at C$76.50, and Royal Bank of
Canada, which sank 0.8 percent to C$49.57.	
 Bank of Montreal fell 1.2 percent to C$53.48 and
Canadian Imperial Bank of Commerce dropped 1.1 percent
to C$69.70. 	
 The Toronto Stock Exchange's S&P/TSX composite index
 pared losses to end the day lower by 25.43 points, or
0.2 percent, at 11,335.77, extending last week's 1.9 percent
 The blue-chip S&P/TSX 60 was down 1.72 points, or 0.3
percent, at 645.46.	
 In choppy trade, the uncertain worldwide growth outlook
generally flushed more investors out of riskier assets on
 But world shares and some commodities were down, while the
euro climbed and bonds eased off last week's record low yields
as speculation mounted that authorities will manage to keep the
euro zone intact.  	
 Still, the focus remains squarely on Europe, said Elvis
Picardo, strategist at Global Securities in Vancouver.	
 "We're on track to test support at 11,000. There is a
serious lack of confidence in what's happening, in the ability
of the EU to stay together and the ability of the euro to
continue as a currency going forward," he said.	
 In individual company news, Research In Motion's 
share price on Monday breached a level that technical analysts
say could spur further declines, after an analyst warned that
the BlackBerry maker's sales were dismal last month. RIM shares
fell 6.1 percent to C$10.03. 	
 Shares of Potash Corporation of Saskatchewan and
Mosaic Co, two of the world's biggest fertilizer makers,
fell to their lowest levels in nearly 22 months on Monday,
highlighting the growing bearish sentiment around producers of
crop-boosting soil nutrients. Potash ended the day down one-half
percent at C$38.89. 	
 Canada's biggest telecommunications company, BCE Inc
, was up 0.6 percent at C$41.12. It said over the
weekend it has joined with a group of private equity fund
managers to buy data center company Q9 Networks Inc for C$1.1
 (Additional reporting by Jon Cook; Editing by Kenneth Barry)	
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