TSX steady as Potash, Goldcorp drop on results, Teck gains
By John Tilak
TORONTO (Reuters) - Canada's main stock index ended narrowly lower on Thursday as jumps in Teck Resources Ltd TCKb.TO and Canadian Pacific Railway Ltd (CP.TO: Quote) and support from gains in commodity prices were offset by disappointing quarterly reports from Potash Corp (POT.TO: Quote) and Goldcorp Inc (G.TO: Quote).
The advances in the price of bullion and other commodities came as the market digested data that showed planned U.S. business spending rose for a third straight month in June, offering a hopeful sign for a pickup in economic growth.
"There's a lack of liquidity and perhaps a lack of conviction in the recent moves," said Matt Skipp, president of SW8 Asset Management.
Concerns about lack of sustained economic growth in China and fears of a significant slowdown in resource markets are weighing on Canadian stocks, he added.
Teck was a big source of support on Thursday, rising 3 percent to C$24.41. The diversified miner reported a drop in second-quarter earnings on lower copper and coal prices. But it also cut its capital spending plan through 2014, delaying new mining projects, a move seen helping it preserve cash.
"Teck's having a nice bounce," Skipp said. "It's getting a relief rally based off people nervous about coal and coal shipments, and the quarter in general."
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 3.16 points, or 0.02 percent, at 12,669.14. Six of the 10 main sectors on the index were higher.
The materials sector, which includes mining stocks, advanced 0.2 percent, with a rise in some gold miners overshadowing the decline in Potash Corp. Continued...