CANADA STOCKS-TSX retreats with bank, mine shares; Encana jumps

Tue Nov 5, 2013 11:00am EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX falls 52.74 points, or 0.39 percent, to 13,309.04
    * Eight of the 10 main index sectors decline
    * RBC has biggest negative influence on the market
    * Encana climbs 4.3 percent

    By John Tilak
    TORONTO, Nov 5 (Reuters) - Canada's main stock index fell on
Tuesday as general weakness in financial and resource shares
offset gains in Encana Corp after the natural gas
producer said it will cut about 20 percent of its workforce and
spin off assets. 
    Weighing on the market was mixed U.S. economic data that
showed service-sector business activity picking up in October,
but new order growth slowing for a second consecutive month.
 
    Uncertainty about whether the European Central Bank will cut
interest rates and what direction the U.S. Federal Reserve will
take with its monetary stimulus program also undermined
sentiment.
    After gaining close to 5 percent in the past month, the
Toronto Stock Exchange's benchmark S&P/TSX composite index has
pulled back.
    "We've had a pretty good run here. A little bit of
consolidation is probably warranted," said David Cockfield,
managing director and portfolio manager at Northland Wealth
Management.
    Cockfield still expects the index to cross the 13,500 mark
this year as the global economy strengthens and sentiment for
resource stocks rebounds.
    The S&P/TSX composite index was down 52.74 points,
or 0.39 percent, at 13,309.04 on Tuesday morning. Eight of its
10 main sectors were in the red.
    Gold miners and other material stocks fell more than 1
percent. Among them, Goldcorp Inc gave back 0.5 percent
to C$25.95. Potash Corp lost 0.8 percent to C$33.62.
    Financial shares hurt the market more than any other sector,
falling 0.7 percent. Royal Bank of Canada, the country's
biggest lender, dropped almost 1 percent to C$69.65 and had the
biggest negative influence on the index.
    Shares of energy producers were down 0.2 percent, with
Canadian Natural Resources Ltd declining 0.8 percent to
C$32.36.
    Encana advanced 4.3 percent to C$19.39.
    The company said it will invest nearly three-quarters of its
2014 capital spending budget in its more lucrative oil and
liquid gas assets. 
    "They're doing the right thing, but they probably should've
done it two years ago, when (natural gas) prices tanked,"
Cockfield said. "It's a recognition of the reality that gas
prices are low and going lower."
    In other company news, software maker Open Text Corp
 said it would buy privately held cloud services company
GXS Group Inc for $1.17 billion. Open Text shares rose 6.1
percent to C$82.26.