Business
Financials push TSX lower
Financials push TSX lower
About this update from Teck Resources Limited Class A
[{"type":"text","content":"\nFinancials push TSX lower\n\nJitters over bailout plan\n Feb. 10, 2009 (Baystreet.ca) -- 10:30 am EST\nIt was a stumbling start to the final trading day of what's been a stumbling week for markets on both sides of the world's longest undefended border, financials doing their bit to weigh down Canadian equities. The S&P TSX Composite Index took a beating in the opening minutes Friday, losing 138.77 points to 8,046.58. Meanwhile, data showed falling prices in Canada and the U.S.Statistics Canada reported the country's annual inflation rate edged lower to 1.1% in January from 1.2% the previous month, driven lower by falling gasoline prices.The financial sector in both countries bore the brunt of early losses as investors worry that a string of programs announced by the Obama administration in the past two weeks won't be enough to pull the U.S. out of a deep recession.In particular, investors have been disappointed over a lack of details contained in U.S. Treasury Secretary Timothy Geithner's bank bailout announcement last week.The TSX financial sector sank, with Royal Bank down $1.39 to $26.54 and Manulife Financial lost 61 cents to $13.89.Kingsway Financial Services Inc. said Friday its loss for the fiscal fourth quarter exceeded gloomy estimates released earlier this month, citing underwriting charges at one of its troubled U.S. subsidiaries and impairments to goodwill.Kingsway, which focuses primarily on auto insurance, reported a loss of $360.4 million U.S., which widened year-earlier losses of $103.5 million. Its shares added three cents to $3.18.The energy sector also lost ground as oil prices fell back from Thursday's 14% surge. Suncor Inc. declined $1.69 to $22.26 and EnCana Corp. stepped back 80 cents to $49.29.The gold sector was ahead as nervous investors sent the price of gold close to the $1,000 U.S. level. Goldcorp Inc. rose $1.20 to $40.34.Barrick Gold Corp. shares were up 59 cents to $46.49 after the company took a $773-million U.S. goodwill writedown while posting a fourth-quarter loss of $468 million. Full-year profit dropped to $790 million from $1.12 billion in 2007. Gold production in 2009 is projected between 7.2 million and 7.6 million ounces, lower than 2008 production of 7.66 million ounces.Teck Cominco Ltd. shares were down 35 cents to $3.70 after the miner agreed to sell its 50% interest in the Will...