CANADA STOCKS-TSX down on Goldman but banks show strength

*TSX down 0.28 percent at 12,036.69

*Resource shares lead index lower

*Financial shares up 0.3 percent

By Claire Sibonney

TORONTO, April 19 (BestGrowthStock) – Toronto’s main stock index
was lower on Monday morning as fraud charges against Goldman
Sachs continued to rattle markets, hitting resource shares
hard, but strength in Canada’s banking sector helped offset the

Oil fell to around $81 and touched a three-week low as the
fraud charges filed against Goldman (GS.N: ) by the U.S.
Securities and Exchange Commission dampened risk appetite.
[O/R], sending the TSX index’s energy sector down 0.6 percent.

Shares of Suncor Energy Inc (SU.TO: ), Canada’s biggest oil
company, were down 1.2 percent to C$33.24, while Canadian
Natural Resources (CNQ.TO: ) lost 0.3 percent to C$76.87.

The materials sector dropped 0.9 percent as gold and base
metal prices were also knocked down by risk averse sentiment.
[GOL/] [MET/L]

Shares of Barrick Gold Corp (ABX.TO: ), the world’s largest
gold producer, slipped more than 1 percent to C$39.23, while
Teck Resources (TCKb.TO: ), the country’s biggest miner of base
metals, lost 1.8 percent to C$41.89.

“[There is] pressure by the selloff overseas but also in
commodity markets … the slide in crude oil, base and precious
metal prices,” said Fergal Smith, managing market strategist at
Action Economics.

“There’s definitely risk aversion in force.”

However, heavily weighted financials, up 0.3 percent,
helped pare the index’s losses after expectation-beating
results from U.S. bank Citigroup (C.N: ) sent its stock higher.

Royal Bank of Canada (RY.TO: ), the country’s largest lender,
gained 0.8 percent at C$61.85, and No. 2 Toronto-Dominion Bank
(TD.TO: ) rose 0.6 percent to C$76.58.

At 10:32 a.m. (1432 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was down 33.97 points, or
0.28 percent, at 12,036.69. Six of its 10 sectors were lower.
Earlier, the index dropped as low as 11,953.95.

Airlines were also in focus due to Canadian flight
cancellations resulting from the Icelandic volcanic plume and
on reports that the ash cloud was nearing Newfoundland.

Shares of Air Canada (ACa.TO: ) fell 4.4 percent to C$2.39,
while WestJet Airlines (WJA.TO: ) was down 0.2 percent to

Also weighing on airline stocks, Porter Airlines, an
upstart challenger to Canada’s big listed carriers, said on
Friday it planned an initial public stock offering to raise
cash for new aircraft for its expanding route network.

Smith added that the impact of the volcanic ash drifting
eastward from Iceland, which has halted flights across northern
Europe, was intensifying worries over debt-ridden Greece.

Talks with European Union and International Monetary Fund
officials, expected to start on Monday, were delayed to later
in the week, Greece said, because of flight disruptions.

“It’s had a broader impact for the market because that’s
fed the risk aversion and Greece spreads have been widening out
and that’s not helped by the talks with the IMF being delayed,”
Smith said.

Stock Market Research

($1=$1.02 Canadian)
(Reporting by Claire Sibonney, editing by Peter Galloway)

CANADA STOCKS-TSX down on Goldman but banks show strength