CANADA STOCKS-TSX pares losses as oil prices rally

Mon May 7, 2012 2:32pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX down 32.74 points, or 0.3 percent, to 11,838.49
    * Index touches 2012 low at 11,785.74
    * Materials lead losses; financials flat
    * Greek, French election results weigh


    By Jon Cook	
    TORONTO, May 7 (Reuters) - Canadian stocks largely shrugged
off early losses on Monday as financial shares rose and oil
prices steadied after Greek and French election results rattled
investors.	
    The outcome of the weekend elections heightened the
uncertainty of the path through the euro zone debt crisis but
most markets, apart from Greece, shrugged off the news.
 	
    The votes were largely viewed as a rejection of painful
austerity measures seen, by some, as key to tackle the euro
zone's debt woes. Not all observers, however, were pessimistic.	
    "It's not necessarily a bad thing," said Pat McHugh,
Canadian equity strategist at Manulife Asset Management.	
    "There are a number of people who have been saying that
austerity measures aren't working because of the nature of the
crisis and the fact that short-term interest rates are so low
everywhere that we have to bring in some packages that are
growth oriented."	
    Oil prices rebounded after hitting multi-month lows, helping
Canadian energy firms trim losses to sit down 0.5 percent.
Materials issues, down 1.1 percent, also strengthened as copper
bounced back from a near two-week low and gold prices eased. 
   	
    Energy losses were led by Nexen, down 3.1 percent
to C$17.23, Penn West Petroleum, off 3.8 percent to
C$15.05, and Enbridge Inc, which slipped 0.6 percent to
C$39.74.	
    TransGlobe Energy Corp fell nearly 9 percent to
C$12.03 as crude prices slid despite the oil and gas company
reporting that quarterly profit rose nearly four times.
 	
    Among material stocks, the most influential decliners
included top fertilizer producer Potash Corp, down 1
percent to C$41.91, Eldorado Gold, down 3 percent to
C$12.76 and Goldcorp Inc, taking off 1.4 percent to
C$35.91.	
    Inmet Mining Corp fell 7.1 percent to C$46.67 after
the Toronto-based miner on Monday raised projected development
costs for its Cobre Panama copper project in Central America by
more than 25 percent to $6.2 billion. 	
    Around 2:15 p.m. (1815 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was down 32.74 points, or 0.3
percent, to 11,838.49. It had touched a 2012 low at 11,785.74.	
    Positive Canadian housing data helped pare some losses.
Statistics Canada said the value of building permits rose by 4.7
percent in March, beating the average forecast of a 2.8 percent
drop. 	
    Despite the uncertainty in Europe, financial shares edged up
0.1 percent as Canada's major banks performed well. Bank of Nova
Scotia led the sector's slight gains, up 0.7 percent to
C$53.14.	
    "The Canadian banks are always perceived as a relative safe
haven and that perception gets magnified when we have problems
on the other side of the Atlantic," said Robert Kavcic, an
economist at BMO Capital Markets.	
    In other news, Thompson Creek Metals slid more than
13 percent to C$4.77 after the molybdenum miner said it plans to
raise up to $430 million to help develop the Mt. Milligan
copper-gold mine in British Columbia. Toronto-listed shares of
the Denver-based company have fallen some 33 percent this year.