CANADA STOCKS-TSX drops on weak data, golds offset

* TSX falls 0.27 percent to 11,749.85

* Weak data raises worries about world economy

* Materials rise on golds, Potash
(Adds details)

By Ka Yan Ng

TORONTO, Aug 19 (BestGrowthStock) – Toronto’s main stock index fell
on Thursday morning after weaker-than-expected economic data
underscored the fragility of the global recovery.

Early data showed initial U.S. jobless claims unexpectedly
rose last week. Data for Canadian wholesale trade for June and
the leading indicator for July came in lower than expected.
[ID:nSCLJJE64O] [ID:nSCLJJE64P] [ID:nN18197408]

“Some weak employment numbers in the U.S. and a very
disappointing wholesale data in Canada has been putting the
Canadian market under pressure,” said Francis Campeau, broker
at MF Global Canada in Montreal.

The losses mounted after the Philadelphia Federal Reserve’s
business index for August fell unexpectedly. [ID:nEAP104J00]

At 10:15 a.m. (1415 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was off 31.23 points, or 0.27
percent, at 11,749.85 after opening higher.

Eight of the index’s 10 main groups were under pressure,
with steep losses in energy and financials, down about 0.5
percent each.

Among key decliners were Toronto-Dominion Bank (TD.TO: ), off
0.65 percent at C$70.82, and Suncor Energy (SU.TO: ), down 0.72
percnet at C$33.05.

Gold-mining stocks were supported by gold prices that
climbed to their highest level since July 1 at $1,233.35 an
ounce, helping offset some of the overall market’s weakness.
Barrick Gold (ABX.TO: ) rose 1.12 percent to C$47.02 and Kinross
Gold (K.TO: ) gained 2.5 percent to C$16.32.

Takeover target Potash Corp. (POT.TO: ) was up slightly,
rising 0.33 percent to C$152.25 as investors held hope for a
sweeter offer to emerge after pushing the stock up 30 percent
since Tuesday.

Overall, the index’s materials sector, home to gold miners
and Potash Corp, was up 0.52 percent.

The index’s infotech group surged 2.4 percent, bolstered by
news that chip maker Intel has agreed to buy security
technology firm McAfee for about $7.68 billion in cash in an
effort to boost its security offerings. [ID:nN19252526]

($1=$1.04 Canadian)
(Reporting by Ka Yan Ng; editing by Peter Galloway)

CANADA STOCKS-TSX drops on weak data, golds offset