CANADA STOCKS-TSX falls as economic concerns mount

* TSX down 0.36 percent at 11,668.17

* Resource groups pressured by retreating commodity prices

* Potash remains buoyed by hopes of richer offer

* Canada July inflation tame
(Adds details)

TORONTO, Aug 20 (BestGrowthStock) – Toronto’s main stock index fell
broadly on Friday morning, tracking equity markets around the
world as jitters lingered about a faltering global economic

The Toronto Stock Exchange’s S&P/TSX composite index
(.GSPTSE: ) was down 42.01 points, or 0.36 percent, at 11,668.17,
paring a decline of nearly 1 percent in the early going. Eight
of the index’s 10 main groups were lower, with the energy and
materials sectors down sharply on retreating commodity prices.

Michael Sprung, president of Sprung & Co Investment
Counsel, said the weakness continued from Thursday with the
general malaise in the U.S. economy depressing investor
sentiment after data showed a tepid labor market and a
contraction in regional factory activity.

The price of oil dropped to a six-week low below $74 a
barrel, which weighed on key energy issues such as Suncor
Energy (SU.TO: ), off 1.4 percent at C$32.53, and Canadian
Natural Resources (CNQ.TO: ), down 1.7 percent at C$33.42.

The index’s materials group, home to golds and fertilizer
producer Potash Corp, was down 0.27 percent. Some gold-mining
issues, which have shone in recent sessions, were weaker on
Friday as the price of gold slid below $1,230 an ounce.
Goldcorp (G.TO: ) was off 0.66 percent at C$43.52, while Yamana
Gold (YRI.TO: ) dipped 0.09 percent to C$10.55. Barrick Gold
(ABX.TO: ) bucked the trend, rising 0.41 percent to C$46.86.

But takeover target Potash Corp of Saskatchewan (POT.TO: )
remained buoyed by hopes that a sweeter offer will emerge.
Potash Corp, up 0.5 percent at C$155.70, is soliciting
alternative bidders willing to pay more than the $130 a share
offered by BHP Billiton (BHP.AX: ), the world’s largest mining
company, in its $39 billion hostile offer. [ID:nN22340110]

“The fact that (Potash Corp) hasn’t changed and some of the
other material stocks have been going down shows that people
are still expecting there could possibly a higher bid coming
along here,” Sprung said.

“Now we know we have 60 days, though I would suspect if
there are other players out there, they won’t want to show
their hand too soon.”

In Canadian economic news, a spike in energy costs and a
new consumption tax in some provinces pushed up consumer prices
in July, but inflation remained below target and was unlikely
to add pressure on the Bank of Canada to hike interest rates.

($1=$1.05 Canadian)
(Reporting by Ka Yan Ng; editing by Peter Galloway)

CANADA STOCKS-TSX falls as economic concerns mount