Roger Biduk - TSX Bounces Back From 350 Point Decline

Roger Biduk writes:

The Toronto stock market closed little changed at the end of a volatile session with early steep losses largely erased as gold and technology stocks turned positive.

The S&P/TSX composite index came back from a 351-point deficit to close down just 27.04 points to 12,226.99 with the TSX weighed by a two per cent slide in the financial sector stocks and falling commodity stocks.

Combined with Monday's 516-point slide on declining oil prices and financial sector losses, the TSX is down about 20 per cent from its mid-June high - the common definition of a bear market.

The TSX Venture Exchange surrendered 75.77 points or 4.9 per cent to 1,459.04, while the CDN$ was off 0.14 cent to 93.5 cents US.

The AIG situation helped push the Toronto financial group down two per cent with Canadian insurance giant Manulife down $1 to $36 while Royal Bank (TSX:RY) lost $1.60 to $46.50 and Scotiabank (TSX:BNS) down 77 cents to $45.83.

Oil prices fell $4.56 to US$91.15 a barrel following a slide of more than $5.00 Monday, leaving the Toronto energy sector flat. EnCana Corp. (TSX:ECA) jumped $1.95 to $69.95 but http://finance.yahoo.com/q?s=SU.TO headed 62 cents lower to $45.63.

Investors hoped that gold stocks would be a good bet in volatile times and the gold sector was boosted nearly four per cent even as the December bullion contract on the New York Mercantile Exchange gave back $6.50 to US$780.50 an ounce.

Hopes that the technology sector could lead markets higher took a beating after computer maker Dell warned of "further softening" in global demand. But the TSX information technology sector finished up 1.75 per cent as Research In Motion Ltd. (TSX:RIM) advanced $3.03 to $107.63.

Garda World Security Corp. (TSX:GW) plummeted $4.80 or 54.24 per cent to $4.05 as it disclosed it has renegotiated its loans at higher interest rates and is exploring a sale of its cash logistics business after losing $1.1 million in the second quarter on a 5.5 per cent revenue decline to $301.1 million.

Allen-Vanguard Corp. (TSX:VRS), an Ottawa-based maker of high-tech security equipment, plunged 26.5 cents or 35.3 per cent to 48.5 cents after it failed to attract outside investment and said it may be unable to make a $10-million debt payment due on Sept. 30.

On the TSX, declines overwhelmed advances 1,193 to 423 with 179 unchanged as 596 million shares traded worth $10.7 billion.

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