Business
TSX slumps by noon
TSX slumps by noon
About this update from Bombardier Inc. Class A
[{"type":"text","content":"\nTSX slumps by noon\n\nRate cuts, bank profits not enough\n Mar. 3, 2009 (Baystreet.ca) -- 12:28 pm EST\nThe Toronto stock market tumbled yet again by midday Tuesday, with investors showing little inclination to bargain hunt a day after punishing losses while the Bank of Canada cut its key rate by half a percentage point.Positive earnings from Scotiabank and Bank of Montreal were not enough to arrest the downward trend.Toronto's S&P/TSX composite index lost some of its early excitement, and some ground, registering 144.39 points to the bad by noon time, to 7,543.12. The central bank cut its key rate to 0.5%, the lowest ever, aiming to mitigate the worst effects of a rapidly worsening downturn.Its statement said the outlook for the global economy has continued to deteriorate, with weaker-than-expected activity in major countries.The Toronto financial sector was off but Bank of Nova Scotia shares were up 11 cents to $27.14 after it reported higher profits Tuesday while leaving its dividend untouched. Revenue growth in its three primary business lines helped boost earnings 1% from a year ago to $842 million, although return on equity dropped to 16.9% from 18.3% a year ago.The Bank of Montreal reported a profit of $225 million, down 12% from a year ago, pulled lower by charges related to challenging capital markets. BMO said credit-loss provisions swelled to $428 million from $198 million, but its dividend also is unchanged and its shares rose 29 cents to $27.28.Elsewhere in the group, insurer Manulife Financial lost 49 cents to $11.09. The insurer's share price has been hammered by speculation about its financial solidity and its stock is down from $20 at the start of February.Royal Bank fell 33 cents to $29.64.Still with the banks, Tiff Macklem, Canada's associate deputy minister of finance, said today that the country's banks are "well-capitalized." He added that government measures to help lending are not "bailouts," and that Canadian businesses are facing tighter credit conditions.The energy sector went south, too, although Suncor Energy Inc. advanced 80 cents to $24.55 and Canadian Natural Resources climbed $1.14 to $37.69.In the base metals sector, Ivanhoe Mines was ahead 31 cents to $6.19.Among industrials, Bombardier Inc. gained 13 cents to $2.68.Magna Entertainment Corp. says its class A shares wil...