CANADA STOCKS-TSX declines as Goldcorp leads sell-off in gold miners

Thu Oct 30, 2014 4:48pm EDT
 
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* TSX down 68.88 points, or 0.47 percent, at 14,458.69
    * Six of 10 main index sectors advance
    * Goldcorp dives 13.3 percent

    By John Tilak and Susan Taylor
    TORONTO, Oct 30 (Reuters) - Canada's main stock index fell
on Thursday as Goldcorp Inc and other gold miners tumbled
after reporting disappointing quarterly results and being hit by
a lower bullion price fueled by positive U.S. economic data.
    Goldcorp shares tumbled nearly 13.3 percent to C$21.90 after
the company's results fell short of market expectations. It had,
by far, the biggest negative influence on the market.
 
    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.
    "Our view is that Canada will be underperforming the S&P 500
over the near term," said Diana Avigdor, portfolio manager and
head of trading at Barometer Capital Management.
    She is bearish on the Canadian market and is not positive on
the commodity sectors. 
    "We don't want to stand in front of the speeding train,"
Avigdor said. "Why do you want to buy a sector that's relatively
weak?"
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 68.88 points, or 0.47 percent, at
14,458.69. Six of the 10 main sectors on the index were higher.
    Shares of energy producers dropped 1.2 percent, reflecting a
decline in the price of oil. In the group, Canadian Natural
Resources Ltd gave back 1.1 percent to C$38.24, while
Suncor Energy Inc, which reported quarterly results late
on Wednesday, climbed slightly to C$39. 
    Gold miners dived 7.7 percent. Yamana Gold Inc gave
back 17 percent after posting a hefty third-quarter net loss,
while Agnico Eagle Mines lost nearly 12 percent after
reporting adjusted earnings that missed expectations. But those
miners reported results late on Wednesday. 
 
    Barrick Gold Corp slumped with the price of bullion
despite unveiling stronger-than-expected third-quarter earnings
on Wednesday. The stock was down 4.1 percent at C$13.75.
 
    "It's pretty grim," said Dundee Capital Markets senior
mining analyst Josh Wolfson about the gold mining sector
selloff. "The response in the market reflects increasing
financial concerns about the sector at current gold prices."
    ($1=$1.12 Canadian)

 (Editing by Peter Galloway and Jonathan Oatis)