CANADA STOCKS-TSX steady as dip in gold shares offsets higher banks

Tue May 7, 2013 11:22am EDT
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* TSX rises 12.70 points, or 0.10 percent, to 12,466.62
    * Five of 10 main sectors decline
    * WestJet falls 5.3 percent after results
    * BlackBerry slips 5 percent, weighs on tech sector

    By John Tilak
    TORONTO, May 7 (Reuters) - Canada's main stock index was
little changed on Tuesday as strength in financial and energy
stocks was offset by declines in gold producers after bullion
prices tumbled on the likelihood of more major central bank
    European Central Bank chief Mario Draghi said the bank was
ready to trim rates again if needed, while Australia's central
bank cut rates to a new low of 2.75 percent and suggested it may
do more. 
    The commentary from the central banks boosted broader equity
markets but dented gold's appeal as an alternative investment.
Gold prices dropped 1.5 percent. 
    Gold shares, down about 36 percent since the start of the
year, fell 3 percent on Tuesday. 
     "Not only is the gold price going down, a lot of gold
producers have not delivered on forecasts. That's a double
whammy on gold equities," said Luciano Orengo, a portfolio
manager with Manulife Asset Management.
    "I'm not ready to call a bottom yet (for the gold sector),"
he added. 
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 12.70 points, or 0.10 percent, at 12,466.62.
    Five of the 10 main sectors on the index were in the red.
    The materials sector, which includes mining stocks, gave
back 1.7 percent, hurt by the weakness in gold producers.
    Financials, the index's most heavily weighted sector, gained
0.4 percent.
    WestJet Airlines Ltd fell 5.3 percent to C$23.40
after the airline said it expects revenue per available seat
mile to decline in the second quarter, hurt by the timing of the
Easter and Passover holidays and cancellation of some business
by travel agency Thomas Cook. 
    BlackBerry slipped 5 percent to C$14.96 and dragged
the information technology sector down 1.4 percent.