TSX slips as golds, BlackBerry, Cameco drag

Mon Feb 11, 2013 4:57pm EST
 

By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index fell on Monday, dragged down by weaker gold mining shares and a sharp fall in BlackBerry (BB.TO: Quote) (BBRY.O: Quote), which lost another major U.S. corporate customer to rival Apple.

Cameco Corp (CCO.TO: Quote), the world's biggest publicly traded uranium producer, also slipped after reporting a sharply lower quarterly profit and pointing to weaker earnings ahead.

Gold miners were among the heaviest laggards on the index as commodity prices fell. Gold extended earlier losses to one-month lows after recent technical support broke down. <GOL/>

The gold mining group, down 2.2 percent in the session, has also been hurt by rising production costs and limited discoveries.

"There's too many companies out there digging holes and not coming up with anything encouraging, and then costs meanwhile keep picking up," said Levente Mady, a senior portfolio manager at PI Financial Corp.

Mady added that he prefers government bonds to Canadian equities because he thinks valuations are too high at current levels.

Goldcorp G.TO was the most influential decliner, down 2.4 percent to C$35.36, while Yamana Gold Inc (YRI.TO: Quote) fell 4.9 percent to C$15.77. Barrick Gold (ABX.TO: Quote) lost 1.5 percent to C$32.34.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended the day down 53.08 points, or 0.41 percent, at 12,748.15. Seven of the 10 main sectors were in negative territory, including energy shares, down 0.5 percent.   Continued...

 
A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch