CANADA STOCKS-TSX falls as energy shares drop on weak oil

*TSX down 41.18 points at 11,866.36

*Energy, banks lead way lower

*Magna shares drop after OSC challenge
(Adds details, quote)

By Jennifer Kwan

TORONTO, June 16 (BestGrowthStock) – Toronto’s main stock index was
lower on Wednesday morning as energy issues fell on weaker oil
prices and fresh concerns emerged about Spain’s fiscal
problems.

Big oil and gas names on the downside included EnCana Corp
(ECA.TO: ), down 1.2 percent at C$34.99, and Talisman Energy
(TLM.TO: ), down 1.3 percent at C$18.03 as the price of oil fell
below $77 a barrel. [O/R].

The index’s financial sector was also lower with Royal Bank
of Canada (RY.TO: ), the country’s biggest lender, down 0.2
percent at C$54.60, and Toronto-Dominion Bank (TD.TO: ) declining
0.8 percent to C$72.87.

At 10:39 a.m. (1439 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was down 41.18 points, or
0.35 percent, at 11,866.36, with eight of its 10 main groups
lower. On Tuesday it rose 2 percent.

Given that rise in the previous session, it’s normal to
“expect a little give back,” said Fred Ketchen, director of
equity trading at ScotiaMcLeod.

Shortly after the open, the index briefly stepped into
positive territory, supported by modest gains in banks.

“If you’re looking for something where you know you’re
going to have a consistent dividend with a fairly attractive
yield, you’ve got modest growth, (the banks are) extremely well
managed, I can understand why that sector is continuing to show
some degree of popularity,” Ketchen said.

On the upside were gold miners. World No. 1 producer
Barrick Gold (ABX.TO: ) was up 0.5 percent at C$44.24. Goldcorp
(G.TO: ) climbed 1 percent to C$44.83.

Gold held near around $1,232 an ounce, with demand for the
metal as a safe haven holding firm as widening spreads between
Spanish and German government bond yields pointed to concern
over European debt levels. [GOL/]

Market worries about Spain’s debt position continued to
simmer, with the premium that investors were demanding to hold
Spanish debt compared with benchmark German bonds rising to a
euro record high of 223 basis points. (ES10YT=TWEB: )
(DE10YT=TWEB: ). [ID:nLDE65F0GD]

The jitters came even though the European Union and the
International Monetary Fund denied on Wednesday a report that
they and the U.S. Treasury were drawing up a safety net for
Spain including a credit line of up to 250 billion euros.

In individual company news, Magna International’s (MGa.TO: )
controversial plan to eliminate its dual class share structure
ran into an additional hurdle with the Ontario Securities
Commission challenging the proposal. Magna’s shares were 3.2
percent lower at C$71.02. [ID:nN16135020]

Canada’s Bombardier Inc (BBDb.TO: ), which was up 1.2 percent
at C$4.89, said it would start delivery of double-deck trains
to Swiss Federal Railways (SBB) in 2012 under a 1.8 billion
Swiss franc ($1.6 billion) contract. [ID:nSGE65F0CD]

Stock Today

($1=$1.03 Canadian)
(Reporting by Jennifer Kwan; editing by Peter Galloway)

CANADA STOCKS-TSX falls as energy shares drop on weak oil