CANADA STOCKS-TSX steady as lackluster data, earnings drag

Tue Apr 23, 2013 5:19pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX rises 0.26 of a point to 12,090.94
    * Teck slips 1.6 percent after profit drops
    * Gold prices fall 1 percent

    By John Tilak
    TORONTO, April 23 (Reuters) - Canada's main stock index
closed little changed on Tuesday as sluggish economic data from
China, Germany and the United States revived concerns about the
global recovery.
    Lackluster earnings reports from some Canadian companies
also weighed down investor sentiment.
    The latest Purchasing Managers' Indexes for the euro area
showed business activity in Germany shrank for the first time in
five months in April, while China's April HSBC flash PMI fell.
Also, U.S. manufacturing grew at its most sluggish pace in six
months as domestic demand dried up. 
    The resource-heavy index, which is sensitive to global
growth trends because of their impact on commodity prices, was
up for the fourth straight session, but is down about 3 percent
on the year.
    "The market's got this rally going, but we don't think we're
out of the woods yet," said Robert McWhirter, president and
portfolio manager at Selective Asset Management. "There is
probably another 2 to 3 months of pullback to occur."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 0.26 of a point at 12,090.94. 
    Last week, the index posted its second-biggest weekly
decline of the year, triggered by a rout in commodity prices,
including the biggest single-day drop in gold prices ever.
    "Commodities are under pressure," said Kevin Headland,
director, portfolio advisory group, at Manulife Asset
Management. "The Asian growth story that we're seeing is slower
than we're used to."
    Headland does not see too many catalysts for commodity
prices, but still expects the index to end the year higher.
     A 1 percent fall in the price of gold and a decline in Teck
Resources Ltd hurt some material stocks. 
    Teck was down 1.6 percent at C$25.60 after the miner
reported a 40 percent fall in first-quarter adjusted profit due
to lower coal prices. The company said economic uncertainty
might affect prices and shipments. 
    Goldcorp Inc fell 3 percent to C$28.44.
    Among energy companies, EnCana Corp lost 1.7
percent to C$18.96 after the natural gas producer reported a 25
percent fall in first-quarter operating profit due to hedging
    Rogers Communications Inc declined 3.5 percent, a
day after it reported first-quarter results. 
    TransAlta Corp was down 2.6 percent at C$13.70 after
the power generation company reported a first-quarter loss, hurt
in part by a one-time charge related to pension funding