November 11, 2010 / 9:29 PM / 7 years ago

CANADA STOCKS-TSX slips on European debt woes, Cisco outlook

3 Min Read

   * TSX down 7.90 points, or 0.06 percent, at 12,934.74
 * Eight of 10 main groups end lower
 * Canadian Tire soars 6.8 pct after results  (Updates to close, adds quotes)
 By Jennifer Kwan
 TORONTO, Nov 11 (Reuters) - Toronto's main stock index slipped lower on Thursday as investor jitters about European debt woes and a glum outlook from tech heavyweight Cisco Systems sparked fresh worries about sluggish economic growth.
 The concerns about Europe hit influential names in the financial sector including Bank of Nova Scotia (BNS.TO), down 1 percent at C$53.85, and Royal Bank of Canada (RY.TO) also down 1 percent at C$53.70. Bank of Montreal (BMO.TO) fell 1.2 percent to C$58.52.
 "You've had the nagging problems of Ireland and debt problems," said Irwin Michael, portfolio manager at ABC Funds.
 "People are not sure what to speculate on that, and there were concerns that might spread to Portugal and Spain, so in consequence the banks are under a little bit of pressure."
 Uncertainty about the Group of 20 summit in Seoul was another factor keeping investors somewhat cautious, added Michael. [MKTS/GLOB] [FRX/]
 The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE finished the day down 7.90 points, or 0.06 percent, at 12,934.74, with eight of its 10 main sectors in the red.
 Energy and materials managed to notch gains, up 0.04 percent and 0.9 percent, respectively.
 Broader market sentiment was also dampened after Cisco Systems Inc (CSCO.O) gave a dismal revenue outlook, stunning investors who had hoped for proof of a recovery in technology spending. The news helped to send U.S. stocks lower. [ID:nN10245398] [.N]
 "They're pretty much a worldwide gauge of what's going on in terms of the corporate sector. Their outlook is dampening (investor sentiment), no doubt about that. People are realizing slow means slow -- slow growth for the economic cycle," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.
 Mining issues helped offset the slide. Teck Resources TCKb.TO was up 4.1 percent at C$50.35 as copper touched record highs, stoked by strong economic data from top consumer China and persistent supply fears as inventories fell. [MET/L]
 Cameco Corp (CCO.TO) was up 3.2 percent at C$37.56, while First Quantum (FM.TO) rose 3.1 percent to C$93.80.
 Canadian Tire Corp (CTCa.TO), the top net gainer on the market, soared 6.8 percent to C$62.93 after the retailer reported a 21 percent jump in net earnings and hiked its dividend. [ID:nN11279801]
 ($1=$1.00 Canadian)  (Editing by Rob Wilson)                                        

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