CANADA STOCKS-TSX flat as financials rebound on Egypt news

Fri Feb 11, 2011 12:02pm EST
 
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   * TSX down 0.78 of a point at 13,838.68
 * Six of the 10 main groups lower
 (Adds details, comments)
 By Solarina Ho
 TORONTO, Feb 11 (Reuters) - Toronto's main stock index was
little changed in a choppy session Friday morning as a modest
rebound in energy and financial issues offset weakness in other
sectors, while news that Egyptian President Hosni Mubarak was
stepping down lifted general market sentiment.
 Oil companies were mixed with Suncor Energy (SU.TO: Quote) up 0.85
percent at C$41.48. Encana Corp (ECA.TO: Quote), which rallied more
than 4 percent the previous session on news of a C$5.4 billion
deal to sell a stake in a shale gas project to PetroChina, down
2.03 percent to C$31.37. [ID:nN1089226]
 The overall energy group, which spent much of the morning
in the red, was up 0.12 percent, moving contrary to oil prices,
which fell on Egypt's news. [O/R]
 Mubarak's departure came on Friday morning Toronto time,
ending three decades of autocratic rule, as he bowing to
growing pressure from the military and mass public protests
demanding he resign. [ID:nLDE7192NZ]
 "You'll just have this continual flip-flop each and every
day because commodity prices have just overheated, and with the
worries in Egypt," said Schwartz.
 "You'll get a day where oil will jump $2 and the next day
all things are calm and it'll drop again $2 ... The fundamental
demand for oil is improving, the supply is quite full, so
there's no reason aside from geopolitical worries for oil."
 At 11:35 a.m. (1635 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 0.78 of a point at
13,838.68. Six of the 10 main groups were lower.
 The financial group reversed direction from earlier losses,
as general investor sentiment lifted, and was up 0.12 percent.
 Toronto-Dominion Bank (TD.TO: Quote) was ahead 0.42 percent at
C$78.84, but insurer Manulife Financial Corp (MFC.TO: Quote) was down,
extending Thursday's losses with a 0.89 percent slide to
C$17.79.
 "It's ridiculous to punish it for being too conservative
now, when you were punishing it two years ago for being too
aggressive, so you can't have your cake and eat it too," said
Barry Schwartz, vice-president and portfolio manager at Baskin
Financial Services.
 "We're positive on some of the dogs, so to speak, of the
last year," Schwartz added.
 Manulife reported a doubling in fourth-quarter profit on
Thursday, and a rebound from a steep third-quarter loss, but
the results still fell short of Street expectations.
[ID:nN08136113]
 ($1=$0.99 Canadian)
 (Reporting by Solarina Ho; editing by Rob Wilson)