UPDATE 1-Toronto stocks down on energy, Maple Leaf
August 25th, 2008 | by admin |* Banks dip on credit jitters, ahead of results
* Maple Leaf slumps amid C$20 mln meat recall
* Precision Drilling to buy Grey Wolf in $2 bln deal (Adds details)
TORONTO, Aug 25 (Reuters) – The Toronto Stock Exchange’smain index fell more than 100 points on Monday morning, draggeddown by the heavyweight energy and financial sectors, whileMaple Leaf Foods (MFI.TO: Quote, Profile, Research, Stock Buzz) tumbled amid a recall of meatproducts linked to a food-poisoning outbreak.
Activity in the energy sector was choppy, but by midmorningthe group was down 1.4 percent as the price of oil remainedbelow $115 a barrel in choppy trade Canadian Natural Resources(CNQ.TO: Quote, Profile, Research, Stock Buzz) fell 1.3 percent to C$85.45.
Financials also weighed, slipping 1 percent, on naggingconcerns over the health of the U.S. financial sector as LehmanBrothers (LEH.N: Quote, Profile, Research, Stock Buzz) remained under the spotlight as a possibleacquisition target.
Adding to fears, bank U.S. regulators closed Columbian Bankand Trust Company late on Friday. It is the ninth U.S. bank tofail this year, hit by the weakening economy and falling homeprices.
“Market sentiment right now is banks are not making as muchmoney as they used to,” said Francis Campeau, broker at MFGlobal Canada, in Montreal. “All Canadian banks are releasingearnings this week so you will see very choppy trading today.”
By midmorning, the S&P/TSX composite index .GSPTSE wasdown 116.51 points, or 0.9 percent, at 13,330.78, with eight ofits 10 main groups lower.