CANADA STOCKS-TSX falters after tapping 3-week high

Tue Mar 27, 2012 4:41pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX down 62.75 points, or 0.5 pct, at 12,512.04
    * Nine of 10 main sectors weaker; telecoms up 0.07 pct
    * Centerra skids 15 pct after mine forecast slashed

    By Jennifer Kwan	
    TORONTO, March 27 (Reuters) - Canada's main stock index
slumped on Tuesday as resource shares slid on softer oil and
metals prices after rallying the previous session on hopes the
Federal Reserve would take further action to stimulate the U.S.
economy. 	
    The energy and materials groups, which make up some 40
percent of the broader index, led the market lower and dropped
0.7 percent and 1.1 percent, respectively.   	
    Leading names on the downside included Centerra,
which plummeted 15.1 percent to C$13.70 as the Canadian miner
slashed its forecast for 2012 production at its flagship mine in
Kyrgyzstan by about a third due to ice movement in the pit, a
decline sure to weigh on the fragile economy of the Central
Asian state. 	
    Also lower was Nexen Inc, down 2.6 percent at     
C$18.08, and Suncor Energy, which fell 0.7 percent to  
C$32.88. First Quantum sank 1.9 percent to C$18.84.	
    Rick Meslin, head of Canadian equities at UBS, said with no
major Canadian data to speak of, markets looked south for
direction. A softer U.S. consumer confidence report gave
investors reason to pause, he said.	
    "I don't think it such a brutal number, but the markets had
done fairly well coming into today. When you saw that it was an
occasion for pause," said Meslin.	
    Data showed Americans were more worried about inflation in
March than at any time in the last 10 months and consumer
confidence waned in the wake of higher gasoline prices.
 	
    Meslin also said money managers may be adjusting holdings as
the end of the quarter nears. The index is on track to gain more
than 4.5 percent for the quarter, and is set for its best
quarterly performance since March 2011.	
    "After the large outperformance of equities in the past
while, you're going to see some allocation back into a more
fixed-income asset base," he said.	
    The Toronto Stock Exchange's S&P/TSX composite index
 finished the day off 62.75 points, or 0.5 percent, at
12,512.04, after having earlier in the day climbed to a
three-week peak of 12,603.71 on hopes the Federal Reserve would
take further action to stimulate the U.S. economy.	
    U.S. Fed Chairman Ben Bernanke said on Monday the U.S.
economy needs to grow more quickly to get unemployment down,
leading investors to take on more risk on hopes the central bank
could conduct another round of quantitative easing.
  	
    Shares of Canadian Pacific Railway sank 1.3 percent
to C$77.90. Battling a fierce challenge from its largest
shareholder, the company is setting performance records this
year, Chief Executive Fred Green said on Tuesday in an unusually
blunt response to his critics. 	
    Enbridge Inc was up 0.6 percent at C$38.46.
Enbridge and Enterprise Products Partners will more than double
capacity of the Seaway Pipeline and expand another line from
Illinois to ship more crude oil out of the glutted U.S. Midwest.