CANADA STOCKS-TSX retreats as Potash Corp, renewed Fed fears weigh

Fri Jul 26, 2013 11:50am EDT
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* TSX falls 41.75 points, or 0.3 percent, to 12,627.39
    * Eight of the 10 main index sectors decline
    * TransCanada drops after quarterly results

    By John Tilak
    TORONTO, July 26 (Reuters) - Canada's main stock index was
lower on Friday, hit again by disappointment over a quarterly
report issued by Potash Corp the day before and
undercut by renewed worry about the U.S. Federal Reserve plans
for its monetary stimulus program.
    The return of Fed concerns and choppy trading in bullion
ensured a volatile session for gold miners. They turned higher
after an initial fall, only to retreat again. In the group,
Barrick Gold Corp was down 0.6 percent at C$17.85.
    TransCanada Corp gave back 0.4 percent to C$46.24
after rising earlier in the day. Canada's No. 2 pipeline
operator reported a 34 percent jump in second-quarter profit due
to higher prices in its power-generation business.
    Focus was on the Fed's policy meeting next week, with the
market again uneasy that it might dial back its stimulus program
    "We know eventually they've got to slow down the bond
purchases, but the economy is not strong enough," said Sal
Masionis, a stockbroker at Brant Securities.
    "There's a lack of confidence in the stock market," he
added. "The more uncertainty there is out there, the less people
want to invest."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 41.75 points, or 0.3 percent, at 12,627.39.
It briefly turned positive earlier in the morning. Eight of the
10 main sectors on the index were in the red.
    The materials sector, which includes mining stocks, reversed
earlier gains to fall 0.6 percent. Losses in the group were led
by Potash Corp, which fell 1.9 percent to C$37.61. The stock was
hit by a number of price-target cuts from analysts on Friday
after the company released quarterly results on Thursday that
fell short of expectations. It also cut its outlook.
    Energy shares fell 0.4 percent, mirroring weaker oil prices.
Canadian Natural Resources was down 1.5 percent at
    Financials, the index's most heavily weighted sector, lost
0.1 percent. Manulife Financial Corp fell 0.4 percent
to C$18.40, and Bank of Nova Scotia gave back 0.2
percent to C$58.23.
    Celestica Inc reported a 19 percent rise in
second-quarter profit on Friday, driven mainly by growth in its
communications business. Shares of the contract
electronics manufacturer jumped 7.4 percent to C$10.50.