TORONTO, April 27 - Toronto's main stock index fell sharply on Monday morning after seven straight weeks of gains as concerns about a possible global swine flu outbreak hit commodity prices, dimming hopes for an economic recovery.
The oil and gas sector was off 2.02 percent as the price of oil dropped more than 5 percent to below $49 a barrel, partly on concern that the world economy could struggle if a swine flu outbreak in Mexico turns out to be the start of a global pandemic. [ID:nLR259704]
Shares of energy companies make up about 22 percent of the overall index and often lead the TSX up or down. Canadian Natural Resources (CNQ.TO) was the top drag on the index, falling 1.95 percent to C$58.28.
The materials group lost 1.85 percent, led by a 2.1 percent drop in fertilizer company Potash Corp of Saskatchewan (POT.TO) to C$99.50.
Even typically safe-haven gold-mining stocks were under pressure as the price of bullion slipped as the firmer U.S. dollar prompted investors to cash in gains after gold's rise to a four-week high. [ID:nLR139073]
"The main driver is fear that the swine flu will slow down a few sectors," said Francis Campeau, broker at MF Global Canada, in Montreal.
"It's as if the economy was getting out of trouble and this comes in."
At 10:10 a.m. (1410 GMT), the S&P/TSX composite index .GSPTSE was down 119.21 points, or 1.25 percent, at 9,430.27. It had fallen more than 2 percent shortly after market open. Seven of the index's 10 main groups were lower.
On Friday, the index rose to its highest level in more than five months.
($1=$1.21 Canadian)
The oil and gas sector was off 2.02 percent as the price of oil dropped more than 5 percent to below $49 a barrel, partly on concern that the world economy could struggle if a swine flu outbreak in Mexico turns out to be the start of a global pandemic. [ID:nLR259704]
Shares of energy companies make up about 22 percent of the overall index and often lead the TSX up or down. Canadian Natural Resources (CNQ.TO) was the top drag on the index, falling 1.95 percent to C$58.28.
The materials group lost 1.85 percent, led by a 2.1 percent drop in fertilizer company Potash Corp of Saskatchewan (POT.TO) to C$99.50.
Even typically safe-haven gold-mining stocks were under pressure as the price of bullion slipped as the firmer U.S. dollar prompted investors to cash in gains after gold's rise to a four-week high. [ID:nLR139073]
"The main driver is fear that the swine flu will slow down a few sectors," said Francis Campeau, broker at MF Global Canada, in Montreal.
"It's as if the economy was getting out of trouble and this comes in."
At 10:10 a.m. (1410 GMT), the S&P/TSX composite index .GSPTSE was down 119.21 points, or 1.25 percent, at 9,430.27. It had fallen more than 2 percent shortly after market open. Seven of the index's 10 main groups were lower.
On Friday, the index rose to its highest level in more than five months.
($1=$1.21 Canadian)
