CANADA STOCKS-TSX flat as Spain hopes not enough to drive rally

Tue Oct 2, 2012 11:11am EDT
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* TSX up 26.17 points, or 0.21 pct, at 12,396.36
    * Nine of 10 sectors stronger, materials down

    By Claire Sibonney
    TORONTO, Oct 2 (Reuters) - Canada's main stock index was
little changed in choppy trade on Tuesday as enthusiasm on signs
that a bailout request from Spain was imminent faded as
investors awaited a new catalyst after a strong third quarter.
    Gains in energy and financial shares was offset by weakness
in materials issue.
    Cenovus Energy was the most influential gainer,
rising 2.3 percent to C$35.36. Canadian Natural Resources
 climbed 1.7 percent to C$31.47 and Suncor Energy
 advanced 0.5 percent to C$32.79.
     Among the decliners, precious metal miners and fertilizer
companies reversed some of the previous day's rally. Potash Corp
 lost 2.6 percent to C$41.88 and Goldcorp Inc was
down 0.8 percent to C$45.03.
    "Frankly, we've been grinding higher now since early June,
but the background news has been consistently the same.
Queasiness in Asia about the growth and in Europe about ... debt
issues and bank refinancing," said Paul Hand, managing director
at RBC Capital Markets.
    At 10:49 a.m. (1449 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 26.17 points, or 0.21
percent, at 12,396.36. Nine of the 10 sectors were positive
after the index briefly turned negative.
    Earlier, markets were buoyed after European officials told
Reuters on Monday that Spain was ready to request a euro zone
bailout as early as next weekend though Germany has signaled
that it should hold off. 
    The latest twist in the euro zone's three-year-old sovereign
debt crisis comes as financial markets and some other European
partners are pressuring Madrid to seek a rescue program that
would trigger European Central Bank buying of its bonds. 
    The market has struggled to hang onto gains in the first
couple sessions of the fourth quarter. The TSX finished the
third quarter up more than 6 percent, as energy companies and
miners benefited from a strong showing in crude and bullion