CANADA STOCKS-TSX hits 2-month low on Iamgold, fiscal worries

Wed Nov 14, 2012 3:07pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX falls 132.30 points, or 1.09 percent, to 12,002.78
    * Index hits two-month low
    * Iamgold tumbles 17 percent after results

    By John Tilak
    TORONTO, Nov 14 (Reuters) - Canada's main stock index fell
more than 1 percent to a two-month low on Wednesday, hit by a
big drop in miner Iamgold Corp after it reported weak
results and by concerns about the U.S. "fiscal cliff" and
European debt.
    Iamgold played the biggest role of any stock in the market's
drop after it reported lower-than-expected quarterly earnings on
Tuesday and cut its production target for 2013. 
    The index's materials subgroup, which includes mining
stocks, fell 1.97 percent, with Iamgold down 17.14 percent at   
C$12.33 and fertilizer producer Potash Corp falling
2.47 percent to C$37.84.
     Market focus was also squarely on the U.S. fiscal crisis as
well as the debt crisis in Europe, where there was a wave of
strikes to protest spending cuts and tax hikes contained in
austerity programs. 
    While concerns over the fiscal crisis were dampening the
markets, some of investors' attention would soon be on China,
said Youssef Zohny, portfolio manager with Stenner Investment
Partners, a unit of Richardson GMP.
    "After the dust settles, investors are going to start to
look at the economic fundamentals, especially at what's
happening in China," he said. The policies that will be unveiled
by the Chinese new government will have a big impact on the
resource-heavy Canadian market, he added.
    At midafternoon, the Toronto Stock Exchange's S&P/TSX
composite index was down 132.30 points, or 1.09
percent, at 12,002.78. Eight of its 10 main subgroups were
lower. Earlier in the session, and the index hit 11,990.54, its
lowest point since Sept. 5.
    The Toronto index's materials and energy subgroups led the
market lower because they are the most economically sensitive,
said Gavin Graham, president of Graham Investment Strategy. 
    "When people have concerns about the pace of economic
growth, particularly in the United States but also in China,
then they tend to sell off," he said.
    Miner Barrick Gold Corp was down 2.46 percent at  
C$34.47, and Goldcorp Inc dropped 2.40 percent to       
    The energy sector was down 0.45 percent. Suncor Energy
 fell 1.14 percent to C$32.18.   
    Bank of Nova Scotia was down 0.69 percent at      
C$53.49, and Toronto-Dominion Bank fell 1.03 percent to
C$79.53. The financial subgroup, which has the biggest weighting
on the index, lost 0.80 percent.
    Shares of Research in Motion, were up 1.9 percent
at C$8.56. The BlackBerry maker said late Tuesday it was
confident its new BlackBerry 10 devices will be 100 percent
ready for a Jan. 30 launch and available in stores "not too long
after" that. 
    Some consumer stocks made gains. Rona Inc was up
3.55 percent at C$11.37 after a large shareholder called for the
replacement of the home improvement retailer's board, leading to
a revival of takeover talk. 
    Loblaw Cos Ltd was up 1.8 percent at C$33.96 after
the grocer raised its dividend.