TSX dips as Pembina, resources, and Home Capital weigh
By Solarina Ho
TORONTO (Reuters) - Canada's main stock index dipped marginally on Monday, pulled lower in part by acquisition news from Pembina Pipeline Corp (PPL.TO: Quote) and broad declines among mining companies.
News of Pembina's C$9.7 billion stock-and-cash deal for Veresen Inc VSN.TO sent shares down 3.3 percent to C$42.05, while smaller rival, Veresen rose 19.0 percent to C$18.13.
The overall energy group retreated 0.2 percent.
The heavily weighted financials group failed to make headway and remained little changed, as modest gains by Canada's five biggest banks were offset by another tumble in Home Capital Group Inc (HCG.TO: Quote), Canada's biggest non-bank mortgage lender.
Shares slumped 13.4 percent to C$6.96 as depositors pulled more money out of the troubled lender. Last month, regulators accused the company of making "materially misleading statements" to investors.
"Home Capital seems to be in the crosshairs of people who want to short the stock, or short Canada," said Ian Nakamoto, equity specialist at MacDougall, MacDougall & MacTier, a division of Raymond James.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE dipped 10.5 points, or 0.07 percent, to 15,575.63. Four of the index's 10 main groups retreated.
"For Canada, it's been a very disappointing market for the last little while," said Nakamoto, noting concerns over oil and the overheated housing sector that was spilling into the financial services sector. Continued...