CANADA STOCKS-TSX stumbles as banks weaken on Cyprus fears
* TSX falls 60.64 points, or 0.47 percent, to 12,765.91 * Six of 10 main index sectors decline * Lululemon shares up 0.6 percent after results By John Tilak TORONTO, March 21 (Reuters) - Canada's main stock index was lower on Thursday as anxiety about the possibility of a debt default and banking meltdown in Cyprus spurred weakness in financial shares Providing some support, however, were stronger manufacturing data from China and the U.S. Federal Reserve's recommitment on Wednesday to its ongoing stimulus program. The Toronto Stock Exchange's S&P/TSX composite index was down 60.64 points, or 0.47 percent, at 12,765.91. Six of the 10 main sectors on the index were in the red. Financials, the index's weightiest sector, were down nearly 1 percent. Royal Bank of Canada, the country's biggest bank, slipped 1 percent to C$60.70, and Toronto-Dominion Bank fell 1.1 percent to C$83.39. The index's materials sector, which includes mining stocks, gained 0.5 percent, helped by a 1.3 percent rise in gold miners. Safe-haven buying pushed the price of gold to three-week highs. Barrick Gold Corp added 1.3 percent to C$29.96, and Goldcorp Inc climbed 1.2 percent to C$33.99. The crisis in Cyprus revived questions about the economic health of the broader euro zone and brought into focus the risks investors face there. The European Central Bank gave Cyprus until Monday to raise billions of euros to clinch an international bailout or face losing emergency funds for its banks. "If this goes down to the wire, there is some risk to the markets," said Stan Wong, vice president and portfolio manager at Macquarie Private Wealth. "Being a little cautious and holding some cash would make some sense." He added, however, that Cyprus was "a $7.5 (billion) to $10 billion problem. It's a relatively small economy." In company news, Lululemon Athletica Inc said it expected earnings to drop in the current quarter, hurt by a recall of its workout pants. It also reported results for the quarter ended Feb. 3 that came in slightly ahead of forecasts. Shares of the yogawear retailer were up 0.6 percent at C$65.75.
© Thomson Reuters 2016 All rights reserved.