CANADA STOCKS-Earnings misses, weaker golds pull TSX lower

Wed Jul 24, 2013 11:42am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX down 25.30 points, or 0.20 percent, at 12,720.08
    * Six of the 10 main index sectors advance
    * Gold-mining shares slip with bullion price
    * Cenovus, Canadian Pacific lower after results
    * Loblaw, Encana, Rogers gain after quarterly reports

    By John Tilak
    TORONTO, July 24 (Reuters) - Canada's main stock index fell
on Wednesday, hit by disappointing results from Cenovus Energy
Inc and Canadian Pacific Railway Ltd as
investors processed a flood of earnings reports from the
country's top corporations.
    Gold-mining shares gave back more than 2 percent as a drop
in the price of bullion weighed on the group. 
    The market also digested more evidence of economic recovery
in Europe, a manufacturing rebound in the United States, and
growing signs of a slowdown in China. 
    Strong results from Loblaw Cos Ltd, Encana Corp
 and Rogers Communications helped push up
shares of those companies but failed to push the market on to
positive ground as the index extended losses from the previous
    "It's hard to get too excited about the Canadian market as
you have the drag from the golds and the materials side," said
Gavin Graham, chief strategy officer at Integris Pension
Management Corp.
    "But companies like Rogers and Loblaw are showing that the
non-resource side of things is actually doing quite well," he
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 25.30 points, or 0.20 percent, at 12,720.08.
    CP Rail reported a slightly lower-than-expected quarterly
profit, hurt by floods and a number of high-profile derailments.
The stock stumbled 1.3 percent to C$128.52. 
    The materials sector, which includes mining stocks, lost
almost 2 percent due to the weakness in gold producers. Goldcorp
Inc lost 2.5 percent to C$29.88, and Barrick Gold Corp
 fell 2.7 percent to C$18.18.
    Shares of energy companies gave back more than 1 percent,
with lower oil prices hitting sentiment. 
    Cenovus Energy Inc's second-quarter operating
profit missed analysts' expectations by a wide margin as higher
crude costs hurt refining operations. The oil producer dropped
3.6 percent to C$31.08 and played the biggest role of any single
stock in pushing the index lower. 
    But Encana gained 0.2 percent to C$18.17 after Canada's
largest gas producer reported a 25 percent increase in
second-quarter operating profit as its move to spend the bulk of
its budget on developing more lucrative oil- and liquids-rich
natural gas plays paid off. 
    Shares of Loblaw rose 2.5 percent to C$49.15 after Canada's
biggest grocer reported a higher quarterly profit as food and
clothing sales rose, prompting a raise in its full-year
operating income forecast. 
    Rogers reported a steep rise in wireless data revenue for
the second quarter. The stock climbed 2.3 percent to C$42.19.
    Six of the index's 10 main sectors, including the weighty
financials group, were higher.