CANADA STOCKS-TSX drops as Goldcorp plunges on results, bullion selloff

Thu Oct 30, 2014 11:14am EDT
 
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* TSX down 100.67 points, or 0.69 percent, at 14,426.90
    * Seven of 10 main index sectors decline
    * Goldcorp dives 9 percent

    By John Tilak
    TORONTO, Oct 30 (Reuters) - Canada's main stock index was
lower on Thursday as Goldcorp Inc dived after it reported
disappointing quarterly results and got hit, along with other
gold miners, by a drop in the bullion price fueled by positive
U.S. economic data.
    Goldcorp shares tumbled nearly 9 percent to C$21.90 after
the company's results fell short of market expectations.
 
    Bullish comments about the U.S. economy on Wednesday from
the U.S. Federal Reserve and data showing that U.S. gross
domestic product grew at faster-than-expected rate in the third
quarter weighed on bullion. Gold prices tend to drop on upbeat
economic sentiment as the commodity loses its appeal as a
safe-haven asset.
    The Toronto stock market's benchmark TSX index has been
volatile in recent weeks and is set to record a sharp decline
this month.
    "It's going to be quite choppy over the next couple of
weeks. We'll see this continue," said Colin Cieszynski, chief
market strategist at CMC Markets. "A lot of speculation on when
the Fed will raise interest rates will go through to next year."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 100.67 points, or 0.69 percent, at 14,426.90.
Seven of the 10 main index sectors were in the red.
    Shares of energy producers dropped 1.2 percent. In the
group, Canadian Natural Resources Ltd gave back 1.5
percent to C$38.12, while Suncor Energy Inc, which
reported quarterly results late on Wednesday, climbed slightly
to C$38.94. 
    Gold miners dived 4.7 percent. Barrick Gold Corp 
slumped with the price of bullion despite reporting
stronger-than-expected third-quarter earnings on Wednesday. The
stock was down 2.9 percent at C$13.93. 
    ($1=$1.12 Canadian) 

 (Editing by Peter Galloway)