CANADA STOCKS-TSX falls but resources regain some ground

Mon Jan 10, 2011 4:44pm EST
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 * TSX cuts losses to finish down 0.2 percent at 13,245.12
 * Most sectors fall
 * Gold-mining issues among the few blue-chip advancers
 * Canadian Natural eyes some output after fire, stock up
 (Adds details)
 TORONTO, Jan 10 (Reuters) - Toronto's main stock index
finished lower on Monday but managed to cut its losses toward
the end of the session as resource shares regained ground and
gold-mining issues rose.
 A flare-up of concern over the euro zone debt crisis cast a
pall over equities and other risky assets on Monday and that
kept the Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE on a downward path that is now five sessions long.
 "We did think the market was a little frothy last year so
we're not surprised to see a bit of a pullback here," said
Michael Sprung, president of Sprung & Co Investment Counsel.
"People managed to keep the rally going to the end of the year
but now I would think they are taking some profits off the
table. Our view all along has been that the market has been
ahead of the underlying economic fundamentals."
 The index finished 27.18 points, or 0.2 percent, lower at
13,245.12. Nine of its 10 main groups were lower, led by
weakness in financials. The utilities group was flat.
 Key decliners included Royal Bank of Canada RY.TO, down
0.63 percent at C$51.69, and Toronto Dominion Bank TD.TO,
down 0.67 percent at C$73.70.
 Fears that Portugal would be forced into a bailout pulled
the index down 1 percent earlier in the session. A firm price
of gold was a factor in the recovery as gold-mining issues were
among the few blue chips that eked out gains.
 Agnico Eagle AEM.TO pushed up 2.18 percent to C$71.32,
while Goldcorp G.TO added 0.38 percent to C$42.66, helping
the index's materials group to limit its decline to 0.05
 But diversified miner Teck Resources TCKb.TO fell 2.34
percent to C$60.50 as the price of copper slipped for a fifth
straight session, weighed down by news that China's copper
imports fell 2 percent in December.
 The energy group recouped nearly all its losses as well,
down 0.07 percent, partly on the rebound in Canadian Natural
Resources CNQ.TO shares. The stock was one of the 10 most
 Canadian Natural recovered some of last week's decline
after it said it could resume limited production at its Horizon
oil sands plant in northern Alberta after determining that key
parts of its upgrader may still be able to function following a
fire last week. [ID:nN10269797]
 The stock, which fell 5.5 percent on Friday following the
fire, rose 2.46 percent to C$41.60.
 ($1=$0.99 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)