CANADA STOCKS-TSX posts 5th straight decline, turns negative on year

Thu Jun 6, 2013 4:47pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX falls 34.32 points, or 0.28 percent, to 12,409.33
    * Seven of 10 main sectors decline
    * Index turns negative on year
    * Bombardier climbs after contract

    By John Tilak
    TORONTO, June 6 (Reuters) - Canada's main stock index fell
for a fifth straight session on Thursday, dragged by weaker
financials to a one-month low as investors nervously awaited an
upcoming U.S. jobs report.
    With the day's drop, the index has slipped into the red for
the year.
    A slew of negative economic numbers this week renewed doubts
about the global economic recovery and weighed on the Toronto
market.
    Investors also speculated whether the U.S. Federal Reserve
will roll back its stimulus program.
    "You've had a series of bad economic data that's been coming
out," said Sid Mokhtari, market technician and director,
institutional equity research, at CIBC World Markets.
    "Maybe people are a little jittery," he added. "Everyone's a
little nervous about tomorrow's nonfarm payroll."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 34.32 points, or 0.28 percent, at
12,409.33. It earlier slipped to its lowest since May 2.
    The European Central Bank kept interest rates unchanged and
President Mario Draghi said the bank's policy would remain
accommodative for as long as needed, signaling a readiness to
keep rates low for months to come, to aid an economic recovery.
 
    U.S. job growth probably picked up only slightly in May, an
Friday's report is expected to show, suggesting the economy is
still in a rut and not ready for the Federal Reserve to dial
back its monetary support. 
    "We're getting fixated on the jobs number because we may or
may not be at an inflection point with interest rates backed
up," said Paul Hand, managing director at RBC Capital Markets.
"So there's a heightened sense of sensitivity around this week's
number."
    Seven of the 10 main sectors on the Toronto index were down.
    The resource-heavy Canadian market has underperformed its
U.S. peers this year because sluggish commodity prices have
weighed on sentiment.
    "We're trapped between the resource stocks and the other
sectors," Hand said. "To get things going, the resource sector
has to gain, and it will depend more on the global economy, not
just the North American economy, being robust."
    Financials, the index's most heavily weighted sector, gave
back 0.8 percent.
    Royal Bank of Canada, the country's biggest lender,
lost 1.2 percent to C$59.82 and played the biggest role of any
single stock in leading the market lower.
    Shares of energy producers gained 0.1 percent after a rise
in the price of oil. 
    Oil sands producer MEG Energy Corp. rose 3.9
percent to C$30.66.
    The materials sector, which includes mining stocks, was down
slightly despite a gain in the gold sector.
    In company news, Bombardier Inc.'s train unit said
it received an order worth about $771 million for a new
generation metro fleet from the Stockholm Public Transport
Authority. The stock climbed 1.2 percent to C$4.92 and was one
of the most influential gainers on the market.