CANADA STOCKS-TSX dips as Europe woes offset Rogers earnings

Tue Jul 24, 2012 2:28pm EDT
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* TSX down 69.90 pts, or 0.6 pct, at 11,475.64
    * Greece, data intensify euro zone worries
    * Rogers Communications jumps 5 pct

    By Jon Cook
    TORONTO, July 24 (Reuters) - Canada's main stock index fell
on Tuesday afternoon, led lower by energy and financial shares,
as news Greece could miss bailout targets added to euro zone
fears, overshadowing solid earnings from telecoms leader Rogers
Communications Inc.
    Global equities slid on a host of downbeat news from Europe
on Tuesday. Markets extended losses after comments by some
European Union officials suggested Greece could miss debt
reduction targets outlined in the country's bailout deal.
    The Greek worries came on the heels of dangerously high
Spanish bond yields that reflected a growing belief that the
country will need a bailout that the euro zone can barely
    Weak manufacturing data, the threat of a credit ratings
downgrade for Germany and disappointing second-quarter results
from Deutsche Bank AG added to the euro zone malaise.
    "It's Europe, Europe, Europe and it doesn't really matter
what the story is right now," said Paul Hand, managing director
at RBC Capital Markets.
    Most of Canada's 10 main sectors were lower. The heavyweight
energy complex led losses, falling 1.6 percent a day after Nexen
Inc's $15-billion takeover bid by China's state-owned
oil company CNOOC boosted oil and gas shares.
    The biggest decliners included Canadian Natural Resources
, down 3.7 percent to C$27.72, Suncor Energy,
which slid 1.5 percent to C$29.85, Cenovus Energy, off
2.2 percent at C$32.53, and Encana Corp, down 3.4
percent at C$20.80.
    "You had many of them up yesterday, probably unwarranted, in
the context of takeovers," said Hand. "There's probably more of
a corrective action in the oils."
    Canadian financials sank 1 percent on the euro zone worry.
Declines were led by top banks, with Toronto-Dominion Bank
 sliding 1.1 percent to C$78.18, Bank of Nova Scotia
 down 0.9 percent at C$50.91, and Royal Bank of Canada
 off 0.3 percent to C$50.78.
    Around 1:40 p.m. EDT (1740 GMT), the Toronto Stock
Exchange's S&P/TSX composite index was down 69.90
points, or 0.6 percent, at 11,475.64. The index retreated more
than 100 points after touching a session high at 11,577.63. 

    The safe-haven telecommunications sub-index led gains,
rising 1.7 percent after earnings from Rogers Communications,
Canada's largest mobile phone company, beat expectations. 
    Rogers Communications shares jumped more than 5 percent to
C$39.20 after it reported higher adjusted earnings on Tuesday as
profit margins rose in its cellular phone business even as
competition picked up. 
    "The news story today is Rogers," said Barry Schwartz, vice
president and portfolio manager at Baskin Financial Services. "I
guess people were expecting them to cut their guidance, and the
fact that they had such a material beat maybe tells us that they
could have raised their guidance."
    In June, Rogers said it had cut 375 jobs to trim costs amid
tough competition. The company employs about 30,000 people.
    Shares of telecom rival BCE Inc also rose, climbing
1.4 percent to C$41.87.
    In other positive news, Eldorado Gold Corp jumped
4.3 percent to C$10.39 after a Greek court revoked an order that
temporarily stopped work at the Canadian company's gold mining
project in the north of Greece, Eldorado said on Tuesday.