CANADA STOCKS-TSX slips as banks, energy offset BlackBerry jump

Thu Jun 19, 2014 11:11am EDT
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* TSX down 22.49 points, or 0.15 percent, at 15,086.76
    * Eight of 10 main index sectors decline
    * BlackBerry jumps 12.3 percent after reporting results

    By John Tilak
    TORONTO, June 19 (Reuters) - Canada's main stock index fell
on Thursday as a jump in BlackBerry after the smartphone
maker reported stronger quarterly results was offset by weakness
in the financial and energy sectors.
    BlackBerry shares shot up 12.3 percent after the company
reported a smaller-than-expected quarterly loss as its
cost-cutting campaign and other turnaround efforts looked like
they were starting to pay off. 
    A 2.5 percent advance in gold-mining shares, which followed
the bullion price higher, also failed to overcome the negative
    The Toronto Stock Exchange's S&P/TSX composite index
 eased from the six-year intra-day high it hit earlier
in the session and from Wednesday's record closing high. It was
down 22.49 points, or 0.15 percent, at 15,086.76. 
    The benchmark has still climbed nearly 11 percent this year
and is still just shy of its record high. But the recent gains
have made investors take a closer look at valuations.
    "It's not cheap anymore, but it's not expensive," said Julie
Brough, vice president at Morgan Meighen & Associates. "There is
still room for multiple expansion, but you want to see earnings
to validate that.
    "You're not going to get earnings increases off of margin
expansion at this stage, so you really need to drive demand,"
she added. "That could be the next catalyst for equities, to
really have confidence that demand is improving."
    Eight of the 10 main sectors on the index were in the red on
Thursday morning.
    Financials, the index's most heavily weighted sector,
dropped 0.4 percent. Bank of Nova Scotia lost 0.7
percent to C$70.73, and Toronto-Dominion Bank declined
0.4 percent to C$54.65.
    Shares of energy producers gave back 0.3 percent, with
Suncor Energy Inc shedding 0.8 percent to C$45.93. 
    "The chaos in the Middle East has been very supportive of
the energy stocks," Brough said. "If we see peace restored in
Iraq, then you may see some of the steam come out of those
    Oil prices were trading higher at midmorning.
    Among gold-mining shares, Goldcorp Inc added 2.8
percent to C$29.10, and Barrick Gold Corp gained 1.1
percent to C$19.08.
    ($1=$1.08 Canadian)

 (Editing by Peter Galloway)