CANADA STOCKS-TSX deepens decline, despite rosy GDP data

* TSX drops 1.6 percent to 11,094.31

* Potash Corp leads decliners for second day

* Economic data fails to calm “spooked” investors
(Adds details)

By Ka Yan Ng

TORONTO, Jan 29 (BestGrowthStock) – Toronto’s main stock index sank
1.6 percent on Friday to close at its lowest level in three
months, pressured by weak commodity prices after stronger than
expected U.S. economic data sparked a rally in the greenback.

The heavyweight energy and materials sectors were among two
of the big drags on the index, down 1.2 percent and 3.5 percent
respectively, as prices for crude oil and gold drove lower.
[O/R] [GOL/]

Influential decliners included Barrick Gold (ABX.TO: ), down
3.1 percent at C$37.12, while Suncor Energy (SU.TO: ) dropped 1.7
percent to C$33.76.

Fertilizer producer Potash Corp (POT.TO: ) slumped for a
second straight session, down 4.8 percent at C$105.92.

Royal Bank of Canada (RY.TO: ) was the top heavyweight
decliner, falling 2.24 percent to C$52.28.

The Toronto Stock Exchange’s S&P/TSX composite index
(.GSPTSE: ) finished down 179.89 points, or 1.6 percent at
11,094.31. Eight of the index’s 10 main groups were lower, with
five of them off more than 1 percent each.

Unexpectedly strong fourth-quarter economic growth in the
United States, and healthy November gains in Canada, failed to
lift investors’ spirits, which have been deflated by recent
policy moves by China and the White House’s plan to rein in
risk-taking by big banks. [ID:nN28246399] [ID:nN29201456]

“The problem is that, at this point the economic numbers
and corporate earnings have taken a back seat to some of the
concerns that have manifested themselves in recent weeks,” said
Elvis Picardo, analyst and strategist at Global Securities in
Vancouver.

“Investors are spooked.”

Investment Research

(Reporting by Ka Yan Ng; editing by Rob Wilson)

CANADA STOCKS-TSX deepens decline, despite rosy GDP data