CANADA STOCKS-TSX ends flat as RIM, Potash rally

Wed Jan 5, 2011 5:56pm EST
 
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   * TSX down 6.32 points, or 0.05 percent, at 13,395.99
 * Five of 10 main groups decline
 * RIM, Potash, Manulife lead gains
 (Adds details, comments)
 By Solarina Ho
 TORONTO, Jan 5 (Reuters) - Toronto's main stock index
closed little changed on Wednesday, recovering from earlier
losses with the help of advances by Research In Motion RIM.TO
and Potash Corp. (POT.TO: Quote)
 Soft commodity prices helped keep pressure on the
resource-heavy index throughout the session, which saw the
materials group retreat 0.48 percent.
 Barrick Gold (ABX.TO: Quote) fell another 3.39 percent to C$49.84
after Tuesday's 2.88 percent as gold prices extended their
decline amid further profit-taking and a strong U.S. dollar.
[GOL/]
 Kinross Gold (K.TO: Quote) slipped 2.21 percent to C$17.74 while
Goldcorp (G.TO: Quote) declined 1.26 percent to C$43.94.
 The energy group pared earlier declines to finish down a
modest 0.15 percent as oil prices bounced back above $90 a
barrel on stronger than expected U.S. economic data.
[ID:nN05600530] [O/R]
 "Often times when you turn the calendar to the new year,
people want to do something different... but I think (the
winners) are going to continue to win here," said Ian Nakamoto,
director of research at MacDougall, MacDougall & MacTier.
 "The materials, the golds are having a pause here, but I
think they'll do well for the balance of the year."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE finished down 6.32 points, or 0.05 percent, at
13,395.99.
 "It's awfully resilient, all things considered. We had a
big run up to the end of the year and one would've thought we'd
have a bigger selloff ... it's come back a fair bit," said
Nakamoto.
 Five of the index's 10 main groups ended lower, but helping
offset the declines was a 1.1 percent rise among technology
stocks, mostly powered by Research In Motion, which was up 4.54
percent at C$61.70.
 Potash shares climbed 3.53 percent to C$161.50 as the
fertilizer giant was bolstered by strong quarterly profit from
fellow producer Mosaic Co. (MOS.N: Quote) [ID:nN05218018]
 Manulife Financial Corp (MFC.TO: Quote) was another influential
gainer, rising 2.95 percent to C$17.78.
 Canada's largest insurer, which has struggled since the
2008 market crash, said it shorted C$5 billion of equity
futures contracts in the fourth quarter of 2010 to protect
itself from market swings. [ID:nSGE70409S]
 The overall financial group eked out a 0.03 percent gain.
 ($1=$1.00 Canadian)
 (Reporting by Solarina Ho; editing by Rob Wilson)