CANADA STOCKS-Miners retreat, pushing TSX lower

Mon Sep 10, 2012 3:46pm EDT
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* TSX down 41.85 points, or 0.34 percent, at 12,226.35
    * Gold miners weigh after strong gains last week
    * Investors step to sidelines ahead of Fed
    * Nordion plummets 40 pct after losing arbitration case

    By Alastair Sharp
    TORONTO, Sept 10 (Reuters) - Canada's main stock index
recoiled on Monday as investors pocketed some big gains from
recent sessions and waited to see if the U.S. Federal Reserve
will launch new stimulus measures.
    Gold miners fell back after a strong showing in the past
week as bullion prices eased from six-month highs. Other miners
also retreated after surging late last week on hopes China's
infrastructure drive will boost demand for commodities needed to
make steel and other construction materials.
    "You've had a lot of strong moves in a couple of days and
you've probably got some traders taking money off the table in
advance of the (U.S. Federal Reserve's) Open Market Committee
meeting later this week," said Bob Gorman, chief portfolio
strategist at TD Waterhouse. 
    The Fed is widely expected to take out extra insurance this
week against an economic relapse by opting for fresh monetary
    Such a move would likely help the Toronto index move higher
as resource-related stocks gain from steps to kick-start
commodity demand, but investors may have already placed all
their bets after recent moves in Europe and China to stoke
economic growth.
    Investors are also awaiting a German court ruling on the
constitutionality of the euro zone's new bailout fund and the
outcome of Dutch elections.        
    At 3:22 p.m. (1922 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was down 41.85 points, or 0.34
percent, at 12,226.35. The index hit a four-month high on Friday
after adding more than 300 points in three sessions.
    Miners Barrick Gold Corp and Goldcorp Inc 
were the two biggest weights on Monday, each down 1.6 percent to
C$38.65 and C$41.38 respectively. Pipeline operator Enbridge Inc
 also pushed lower, down 1.4 percent at C$38.28.
    Bucking the trend was Talisman Energy Inc, which
jumped 2.4 percent to C$14.20 after the independent oil explorer
said its CEO had stepped down, which investors took as a sign
the company could be looking for a buyer. 
    Iron ore posted its biggest one-day gain on record on Monday
and China steel futures rose sharply for a second day, supported
by hopes Beijing's approval of more than $150 billion in
infrastructure projects would resuscitate steel demand.
     "Those are massive rallies on the fact that this time China
is actually going to do a stimulus that will stick and require
commodities," said Barry Schwartz, a portfolio manager at Baskin
Financial Services.
    But after starting the day in positive territory,
diversified miner Teck Resources Ltd slipped 0.8
percent to C$29.28 and base metals producer Inmet Mining Corp
 lost 1.4 percent to C$48.48. Both had jumped sharply on
    Weak Chinese trade data on Monday underlined the likelihood
that Beijing would spend more to deal with the damage done to
the world's second largest economy by companies cutting
production, inventories and imports in the face of anemic global
    Beijing has given the green light to infrastructure projects
worth more than $150 billion to resuscitate its steel industry
and pull China's economy out of a slowdown. 
    Shares of Nordion Inc plummeted more than 40
percent after the provider of medical isotopes suspended its
quarterly dividend after an arbitration panel rejected its claim
for damages from its main supplier. 
    "It's an upsetting situation and hopefully they can recover
from that," Schwartz said.