CANADA STOCKS-TSX rally fizzles on weak global data

Wed May 2, 2012 5:02pm EDT
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* TSX down 102.67 pts, or 0.8 pct, to 12,230.12
    * Energy and materials shares lead losses
    * U.S., China, Europe data weighs on commodities
    * Barrick shares fall 2.7 pct after soft earnings

    By Jon Cook	
    TORONTO, May 2 (Reuters) - Toronto's main stock index saw
its five-day rally halted on Wednesday as mining and energy
shares retreated after weak U.S. private-sector jobs data and
shrinking manufacturing activity in Europe and China hurt demand
for riskier commodities.	
    The reports countered Tuesday's strong manufacturing data in
China, the U.S. and Canada that had sent global markets soaring.	
    On Wednesday, those gains were all but erased after a report
by payrolls processor ADP showed U.S. private employers added
119,000 jobs last month, well short of expectations.
    "The ADP job numbers were pretty darn weak," said John
Stephenson, senior vice president at First Asset Investment
Management Inc. "So people are saying manufacturing was up but
unfortunately nobody hired anyone."	
    Analysts look to the ADP number as a precursor of what to
expect from the U.S. Labor Department's April jobs report on
    The Toronto Stock Exchange's S&P/TSX composite index
 finished down 102.67 points, or 0.8 percent, to
12,230.12. It was its biggest one-day drop in more than a week.	
    Six of 10 main sectors in the index were lower. Losses were
led by the heavyweight energy group, down 1.8 percent, and
materials, which fell 1.6 percent as oil, gold and metals prices
    Barrick Gold was among the most influential
decliners, down 2.7 percent to C$38.80, after the world's
largest gold miner reported a first-quarter profit on Wednesday,
but investors remained concerned about underlying production
    "Costs were higher and the copper production was not what
everybody was expecting so that's putting pressure (on the
stock)," said Sid Mokhtari, director of institutional equity
research at CIBC World Markets.	
    Goldcorp, Canada's No.2 gold producer, fell 1.4
percent to C$37.54. Shares of Yamana Gold Inc slid 2.6
percent to C$14.15 after the gold producer also reported a
higher quarterly profit on Tuesday. 	
    Other resource firms weighing on the downside, included Teck
Resources, which fell 2.2 percent to C$36.39, Canadian
Natural Resources, down 2.3 percent to C$33.91, Suncor
Energy, down 2.1 percent to C$32.24, and Cenovus Energy
 slid 4.3 percent to C$34.61.         	
    Overnight, data from the euro zone showed a deepening
contraction in manufacturing in the region that heightened
contagion fears and increased pressure on the European Central
Bank ahead of its meeting on Thursday to use bond buying and
other measures to shield weaker euro members from additional
    China also stoked concerns after data revealed its
manufacturing sector shrank for the sixth month running in
    Canadian financial shares dipped 0.6 percent. Royal Bank of
Canada dropped 1 percent to C$56.30 and Bank of Nova
Scotia slid 0.8 percent to C$53.98.	
    Research In Motion also continued its swoon from
Tuesday, sliding 5.1 percent to C$12.63 as investors were
unimpressed after the struggling BlackBerry maker gave
developers a glimpse of its next-generation BlackBerry 10
    "It's certainly inexpensive," said Stephenson, adding: "The
only reason to buy it today would be if your view is that
they're going to come up with a plan to split up the company in
some form." 	
    In other earnings news, Ivanhoe Mines tumbled 3.4
percent to C$10.96 after the miner appointed a new CEO to
replace founder Robert Friedland, who was ousted last month when
the company's majority owner, global miner Rio Tinto,
took control over management.