Malcolm Morrison, The Canadian Press
June 29, 2008 - 12:16 a.m.

TORONTO - Stock markets look set for more losses after a dismal end to the second quarter to the degree that investor unease over the existing pecuniary crisis reached new heights and oil surged to new record levels, putting even modest economic advancement in peril.

“It’s a period of great uncertainty,” said Danielle Park of Venable Park Investment Counsel in Barrie, Ont., who thinks we won’t see much in the way of upside for not the same six to eight months.

With one more mercantile day to go in the quarter, Toronto’s S&P/TSX is estimate to end the three-month period 7.5 per cent higher. But the characteristic is from a thin to a dense state acutely from the record closing high of 15,073 from June 18.

“When we look at the TSX, even at the 15,100 level, it was the lightest volume of the year, it had negative momentum, the breadth was awful - the number of public funds above their 52-day moving medial sum was like 55 per cent,” Park said.

The Dow Jones industrial average has fared even worse, down 7.4 per cent from the start of the quarter and struggling to maintain a toehold just above 11,300, its worst level since mid-2006.

It’s also down about 20 per cent from its all time high from last October.

The recent string of sharp losses has come like monetary stocks retreated on more downgrades and warnings of further big writedowns and worries near to the depth of economic slowdowns in the manner that oil prices soared more than 35 for cent during the quarter.

Strong oil prices have been wonderful for the energy sector, up about 23 per cent in the March-June period, only by reason of precious little else.

The Toronto financials sector has fallen seven per cent in the second quarter.

Many analysts say the rise in oil is firmly rooted in finite supply and manifestly limitless demand from emerging countries, particularly China and India.

But Park said these price rises simply can’t avail on, and that will spell trouble for energy stocks.

“At the end of the day if the underpinnings are weak and it’s not a sustainable pattern, then you’re signing up for whatever comes your way including other risk than you can possibly imagine so that’s the trouble,” she said.