Roger Biduk - Bay Street Lower on Financials

Roger Biduk writes:

The Toronto stock market closed lower Tuesday as rising energy and gold stocks failed to compensate for a slide in bank stocks a day after one of the worst declines on record.
The S&P/TSX composite index closed down 78.4 points to 8,327.81 - after plunging 9.3 per cent Monday.
The TSX Venture Exchange headed down 8.02 points to 731.1.

The Canadian dollar was off 0.37 cent to 79.84 cents U.S., as the Liberals and NDP say they're ready to govern in a coalition with Bloc Quebecois support and the minority Conservatives look for a way to retain power.
However, analysts note that the political uncertainty is likely not to blame for the weak performance on the TSX.

TSX financials fell four per cent with Bank of Nova Scotia (TSX:BNS) down $2.47 or seven per cent to $32.38 after the bank said its fourth-quarter profits fell 67 per cent to $315 million.
Manulife Financial Corp. (TSX:MFC) also announced it is issuing $2.125 billion in new common shares, and expects to report a $1.5-billion fourth-quarter loss because of annuity provisions. Its shares traded down 57 cents to $19.89

The TSX energy sector, pounded by a 13 per cent slide Monday, was 1.65 per cent higher. The January crude contract moved $2.32 lower to US$46.96, added to a slide of over US$5 Monday after OPEC failed to agree on a production cut last weekend.
EnCana Corp. (TSX:ECA) rose $1.62 to $53.94 while Suncor Energy Corp. (TSX:SU) was down 77 cents to $23.13 on the TSX.
However, Nexen Inc. (TSX:NXY) soared $2.03 or 9.3 per cent to $23.88 after going as high as $29.10 - its biggest one day jump in 21 years - after The Financial Times Alphaville website, citing unnamed sources, said French energy major Total SA is poised to make a bid for the Calgary-based international oil and gas firm. The report, largely paralleling previous speculation, said Total's board is meeting to discuss an offer worth up to $19.7 billion, or $38 per share.
Shares in Opti Canada (TSX:OPC), Nexen's partner in the Long Lake steam-assisted gravity drainage project in the Athabasca oilsands, were up 54 cents or 27 per cent at $2.54.

The gold sector was the biggest percentage advancer, up 7.4 per cent as bullion in New York gained $6.50 to US$788.30 an ounce. Barrick Gold Corp. (TSX:ABX) moved ahead $1.99 to $34.64.

Shares of BlackBerry maker Research In Motion (TSX:RIM) slid below their lowest level in more than a year on Tuesday, down $3.75 to $46.46, going as low as $44.60 - after J.P. Morgan analyst Paul Coster warned that sales of the smartphone with businesses and consumers will be slower due to the economic downturn.
Sierra Wireless Inc. (TSX:SW) is bidding 218 million euros - C$345 million - for Wavecom S.A., a French provider of machine-to-machine wireless technology. Sierra shares fell $2.64 or 27.27 per cent to $7.04.

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