CANADA STOCKS-TSX falls as Rona bid dropped, Fed elation fades

Mon Sep 17, 2012 5:08pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX closes down 52.61 points, or 0.42 percent, at
    * Rona falls 11.6 pct as Lowe's walks away from bid
    * Declines across sectors as Fed euphoria fades

    By Alastair Sharp
    TORONTO, Sept 17 (Reuters) - Canada's main stock index fell
on Monday, hurt by a drop in shares of retailer Rona Inc
 after a takeover proposal fell through and by fading
euphoria over last week's aggressive move by the U.S. Federal
Reserve to spur growth.
    Shares of home-improvement chain Rona fell 11.6 percent to
C$11.29 after Lowe's Cos Inc withdrew its C$1.8 billion
($1.86 billion) proposal to bid for the Quebec-based company.
    The sharp sell-off made Rona one of the single biggest
decliners on the Toronto Stock Exchange's S&P/TSX composite
    The index ended the day down 52.61 points, or 0.42 percent,
at 12,446.86. Nine of its 10 main sectors fell with the heaviest
drops in its financial, mining, and oil and gas sectors.
    The fall followed several strong sessions of gains late last
week on the back of a new round of stimulus measures by the U.S.
Federal Reserve. On Friday, the index hit a five-month high.
    "We're taking a breather here, Thursday and Friday were very
good days. Nothing goes straight up or straight down," said John
Kinsey, portfolio manager at Caldwell Securities.
    Some energy stocks were sideswiped by a sharp selloff in the
price of crude, which eliminated nearly six days of gains.
 Major producer Suncor Energy Inc was down 0.9
percent at C$34.02 - 
    Others bucked the trend, including smaller Crescent Point
Energy Corp, which rose 3.9 percent to C$43.74 in a
move that Kinsey ascribed to analyst upgrades. Pipeline company
Enbridge Inc added 1 percent to C$38.81.
    Gold miners featured on the list of gainers as bullion
slipped much less drastically than oil. 
    After starting the day stronger, the country's biggest banks
and insurers turned negative. Manulife Financial Corp 
was the single biggest weight on the index, down 1.3 percent at
    Diversified miner Teck Resources Ltd also weighed,
down 3.8 percent at C$31.78, after moving up strongly last week.
    "It's just some sober reassessment of last week's events, no
more, no less," said John Ing, president of Maison Placements