TSX falls as earnings reports fail to impress

Thu Apr 30, 2015 4:26pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index fell on Thursday as investors, positioning their portfolios at the end of the month, appeared less than impressed by a host of quarterly results.

Still, the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE rose 2.2 percent in April.

But those gains may be reaching their limits, as investors worry equities prices may have risen up too quickly given the uncertain economic and monetary environment.

"The TSX, like other global markets, is hitting some resistance levels," said Youssef Zohny, portfolio manager at StennerZohny Investment Partners+. "I wouldn't be surprised to see a global pullback as we enter the spring."

"If monetary stimulus is not helping revive growth, then stocks are probably expensive," he said.

Investors took a handful of less-than-stellar earnings reports as a sign to step back from some big names on Thursday.

Goldcorp Inc (G.TO: Quote), the world's biggest gold producer by market value, weighed heaviest, falling 6.2 percent to C$22.71 after disappointing earnings.

Potash Corp (POT.TO: Quote), the world's biggest fertilizer company, missed quarterly forecasts and cut its full-year profit outlook, pushing its shares down 1.3 percent to C$39.28.   Continued...

 
A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014.  REUTERS/Mark Blinch