CANADA STOCKS-TSX steady as Potash, Goldcorp drop on results, Teck gains

Thu Jul 25, 2013 4:54pm EDT
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* TSX falls 3.16 points, or 0.02 percent, to 12,669.14
    * Six of the 10 main index sectors advance
    * Potash Corp the biggest negative influence on index
    * Teck rises after quarterly report

    By John Tilak
    TORONTO, July 25 (Reuters) - Canada's main stock index ended
narrowly lower on Thursday as jumps in Teck Resources Ltd
 and Canadian Pacific Railway Ltd and support
from gains in commodity prices were offset by disappointing
quarterly reports from Potash Corp and Goldcorp Inc
    The advances in the price of bullion and other commodities
came as the market digested data that showed planned U.S.
business spending rose for a third straight month in June,
offering a hopeful sign for a pickup in economic growth.
    "There's a lack of liquidity and perhaps a lack of
conviction in the recent moves," said Matt Skipp, president of
SW8 Asset Management.
    Concerns about lack of sustained economic growth in China
and fears of a significant slowdown in resource markets are
weighing on Canadian stocks, he added.
    Teck was a big source of support on Thursday, rising 3
percent to C$24.41. The diversified miner reported a drop in
second-quarter earnings on lower copper and coal prices. But it
also cut its capital spending plan through 2014, delaying new
mining projects, a move seen helping it preserve cash.
    "Teck's having a nice bounce," Skipp said. "It's getting a
relief rally based off people nervous about coal and coal
shipments, and the quarter in general."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 3.16 points, or 0.02 percent, at
12,669.14. Six of the 10 main sectors on the index were higher.
    The materials sector, which includes mining stocks, advanced
0.2 percent, with a rise in some gold miners overshadowing the
decline in Potash Corp.
   Many earnings reports were "awful," said Colin Cieszynski,
senior market analyst at CMC Markets Canada. "It looks like just
about everybody missed."
    "But it looks as though commodity prices are holding up some
of the stocks," he added.
    Bullion prices added 0.5 percent, helped by a weaker U.S.
    Potash fell 2.1 percent to C$38.35, playing the biggest role
of any single stock in weighing the index down. The world's
biggest fertilizer producer reported a lower-than-expected
quarterly profit and cut its outlook as prices for its crop
nutrients fell. 
    Goldcorp was down 1.3 percent at C$28.85. The world's
largest gold miner by market capitalization posted a
second-quarter loss as a sharp drop in the gold price cut into
profits and the company recorded a $2 billion noncash impairment
    Shares of rival Barrick Gold Corp, however, climbed
1.6 percent to C$17.96.   
    Shares of energy producers climbed 0.1 percent.
    Husky Energy Inc rose 1.9 percent to C$30.15 after
Canada's No. 3 integrated oil company reported a
stronger-than-expected quarterly profit as production rose and
the company realized higher prices. 
    CP Rail rebounded from a decline in the previous
session, when its quarterly results disappointed the market. CP
climbed 3 percent to $131.26 and had the biggest positive
influence on the index.