Gold miners keep TSX out of global rally
By Jon Cook
TORONTO (Reuters) - The TSX ended little changed on Monday as retreating gold issues offset energy sector gains, preventing Canadian equities from joining the global rally after Greece approved tough new austerity measures to win a critical debt bailout.
Most of the TSX's 10 main sectors were higher, but the gains were undercut by a weak showing from the world's largest gold miner and others in the mining space.
Despite a rise in bullion prices <GOL/>, Barrick Gold (ABX.TO: Quote) slid 0.6 percent to C$47.97, coming under pressure from plans to sell its 20 percent stake in Russia's Highland Gold (HGM.L: Quote), pulling out of one of the world's most promising - but also toughest - gold frontiers.
Goldcorp (G.TO: Quote), Canada's second largest gold miner, was also down, falling 0.5 percent to C$45.70.
Base metal miners also helped pull the materials sector lower. Teck Resources TCKb.TO fell 2.3 percent to C$39.30 as copper prices slipped after encountering stiff resistance at around the $4 per pound ($8,800 per tonne) level. <MET/L>
"For Canadian investors it's a little disappointing, because we're seeing the rest of the world rally on a deal in Greece and we're being left out of the party," said Philip Petursson, portfolio advisory group at Manulife Asset Management.
World stocks rose on Monday after Greece's parliament passed drastic austerity measures to avoid a messy debt default, but doubts over whether Athens will be able to live up to its promises and secure a new rescue package curbed an initial rally in the euro.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 9.27 points, or 0.07 percent, at 12,398.69, after giving up earlier gains and briefly turning negative. Continued...