CANADA STOCKS-TSX retreats in broad decline after 6-day rise

Wed Apr 6, 2011 11:12am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * TSX down 32.10 points, or 0.22 pct, at 14,238.43
 * Nine of 10 main sectors lower
 * Valeant shares fall as Cephalon rejects bid
 (Updates with details, comment)
 By Solarina Ho
 TORONTO, April 6 (Reuters) - Toronto's main stock index
retreated on Wednesday morning after a six-day rally, as energy
and financial issues led the market lower, while materials gave
back strong gains made earlier in the session.
 Toronto-Dominion Bank (TD.TO: Quote) was the most influential
decliner, slipping 0.72 percent to C$84.68. It was followed by
Suncor Energy (SU.TO: Quote), which was down 0.89 percent at C$43.21.
 The overall financial sector was off 0.6 percent, while
energy issues were down 0.4 percent.
 At 10:18 a.m. (1418 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 32.10 points, or
0.22 percent, at 14,238.43, as investors took some profits
after a 2.7 percent rise over the previous six sessions.
 Nine of the TSX's 10 main groups were lower, with
technology shares the lone advancing sector.
 "The market is searching for direction, but the direction
still appears to be up," said Irwin Michael, portfolio manager
at ABC Funds.
 "It is our view at ABC Funds that the market and the
economy will continue to saw-tooth their way up. We've just got
to be mindful of the saw teeth on the way down."
 Energy issues were lower despite crude prices that held
near 2-1/2 year highs. Oil prices were underpinned by ongoing
upheaval in the Middle East and North Africa and by U.S. dollar
weakness ahead ahead of a interest rate hike decision by the
European Central Bank. [O/R]
 U.S. natural gas futures, however, were lower as milder
spring weather was expected to curb demand in coming weeks.
 The materials group, home to miners, edged down 0.11
percent, with diversified miner Teck Resources TCKb.TO off 1
percent at C$55.82. Barrick Gold (ABX.TO: Quote) slipped 0.8 percent
to C$51.94.
 The group tracked the rest of the index lower after a
strong initial start, with mining companies initially lifted by
record high gold prices and strong copper, before cashing in
gains. [GOL/] [MET/L]
 Healthcare shares fell 1.03 percent, dragged lower by a
1.59 percent decline by Valeant Pharmaceuticals International
(VRX.TO: Quote). The stock was at C$51.26 following news that U.S.
drug maker Cephalon Inc CEPH.O rejected its $5.7 billion
unsolicited takeover bid. [ID:nN05162826]
 Michael said the bias on the TSX was still to the up side,
with equities expected to drive higher on better than expected
earnings, record commodity prices, and a mergers and
acquisitions environment that was "alive and well".
 "There's still a lot of cash out there. Everyone's been
waiting for the market to come off and it really hasn't," he
 ($1=$0.96 Canadian)
 (Reporting by Solarina Ho; editing by Rob Wilson)