CANADA STOCKS-TSX falls as euro-zone fears hit base metals

Mon Jan 10, 2011 10:48am EST
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 *TSX down 42.81 points at 13,229.49
 *Eight of 10 sectors weaker
 (Updates with details, comments)
 By Claire Sibonney
 TORONTO, Jan 10 (Reuters) - Toronto's main stock index fell
on Monday morning, after dropping for all four trading days
last week, as a flare-up of concern over the euro zone debt
crisis dampened appetite for risk.
 Base-metals miners slid 2 percent after the price of copper
declined, with Teck Resources plunging 3.4 percent to C$59.82.
[MET/L]. The euro zone worries pushed up the U.S. dollar,
making metals costlier for non-U.S. investors.
  "I think we're partly paying back for the very strong
December ... it's unrealistic to expect continual strength in
the market," said Ian Nakamoto, director of research at
MacDougall, MacDougall & MacTier.
 "There's always going to be some sort of pullbacks here as
the worries that played out last year continue this year ... in
particular what's going on with sovereign debt in Europe. It's
a bit of deja vu but we just haven't solved the problems."
 The latest concern came after senior euro zone source said
in a Reuters interview on Sunday that pressure was growing on
Portugal from Germany and France to seek financial help from
the European Union and International Monetary Fund to prevent
the debt crisis spreading. [ID:nLDE7080FG]
 Also weighing a bit on sentiment, China's trade surplus
fell 6 percent to $183 billion last year. [ID:nTOE709033]
 At 10:20 a.m. (1520 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 42.81 points, or 0.3
percent, at 13,229.49. Eight of the index's 10 main groups were
 Limiting the index's losses, its gold-mining subsector
firmed 0.4 percent as the price of the precious metal steadied,
following a recent losing streak. [GOL/]
 Barrick Gold Corp ABX.TO rose 0.3 percent to C$48.82,
while Goldcorp Inc G.TO climbed 0.7 percent to C$42.82.
 In individual company news, HudBay Minerals HBM.TO
slumped 2.6 percent to C$16.32 after it said it would buy
Norsemont Mining NOM.TOfor C$362.8 million. [ID:nSGE70908D]
Norsemont shares were up 5.4 percent at C$4.50,
  Baffinland Iron Mines BIM.TO gained 0.7 percent to
C$C$1.43 after Nunavut Iron Ore said it would boost its
takeover offer to C$1.45 in cash per share, plus one exchange
right per common share. [ID:nN10262785]
 Canadian Natural Resources CNQ.TO jumped 1.5 percent to
C$41.20 after the company said it expects to have a repair
schedule readied next week after a fire broke out at its main
oil sands project in northern Alberta. [ID:nN07198897]
 ($1=$1.00 Canadian)
 (Reporting by Claire Sibonney; editing by Peter Galloway)