CANADA STOCKS-TSX slides after Draghi comments
* TSX down 75.05 pts, or 0.6 pct, at 11,543.48 * Energy shares lead losses on weak earnings results * ECB's Draghi disappoints with no new stimulus By Jon Cook TORONTO, Aug 2 (Reuters) - Toronto's main stock index was lower in volatile trade on Thursday morning, led by energy shares, as comments from European Central Bank President Mario Draghi disappointed investors. Markets had anticipated Draghi would announce fresh crisis-fighting measures after saying last week the ECB would do all it could to preserve the euro. But the ECB left its benchmark interest rate unchanged and Draghi largely repeated previous bank policy at his monthly news conference, leaving open the possibility of future action but providing no surprises. The ECB statement came a day after the U.S. Federal Reserve also opted not to announce any new stimulus measures. Equities rebounded from sharp losses earlier as both banks signaled they may act down the road if economic conditions worsen. "Maybe they're telling us that this economy can try to get back on its feet on its own," said Mike Newton, portfolio manager at Macquarie Private Wealth Inc. "If the market doesn't stabilize by mid-September then we'll likely hear a whole other round of coordinated efforts by these entities." Sentiment was also helped by U.S. economic data on Thursday that showed American jobless claims rose less than expected last week. Investors were hopeful it augured well for Friday's key non-farm payrolls report for July. Canada's resource-heavy index was dragged down by the heavily weighted energy sector, which fell 1.5 percent. A combination of lower oil prices and weak earnings results from Enbridge Inc and Petrominerales Ltd hurt energy shares. Enbridge slid 1.1 percent to C$40.04 after the pipeline operator reported a sharp fall in second-quarter profit due to losses on financial derivatives. Petrominerales Ltd shares plummeted 16 percent to C$7.74 after the oil and gas producer's second-quarter adjusted profit fell 66 percent on lower oil prices and oil sales. Around 11:30 a.m. (1530 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 75.05 points, or 0.6 percent, at 11,543.48. The index rebounded after touching a session low 11,475.43 shortly after Draghi's remarks. "The volatility is really troublesome," said Newton, who said it was reflected in the market's reaction to earnings results. Canada's influential materials sector, which includes miners, was down 0.4 percent. Losses were led by Potash Corp , which fell 3 percent to C$42.60. Kinross Gold Corp slid 1.6 percent to C$7.88 after the company - one of Canada's largest gold miners - said on Wednesday it had replaced long-time CEO Tye Burt, who spearheaded its massive acquisition of Red Back Mining that has so far failed to live up to expectations. Kinross, which reports second-quarter results next week, named Paul Rollinson its new Chief Executive. First Quantum Minerals Ltd led gains, jumping nearly 7 percent to C$19.14 after the base metal miner said on Wednesday its second-quarter profit fell slightly as lower copper prices and higher production costs outweighed higher copper and gold sales volumes. On Thursday National Bank Financial raised its price target on the miner to C$23 from C$21. Shares of New Gold Inc also climbed 3.8 percent to C$10.38 a day after the miner reported a lower second-quarter profit, but the number was in line with expectations. In other earnings news, shares of Valeant Pharmaceuticals International rose nearly 3 percent to C$48.55 after the drugmaker reported a second-quarter net loss on Thursday as costs rose, but adjusted cash earnings rose and the company raised its forecast for full-year cash results.
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