CANADA STOCKS-TSX little changed despite volatility

Thu May 12, 2011 3:44pm EDT
 
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   * TSX down 4.45 points at 13,415.29
 * Six of the index's 10 main groups lower
 (Adds details, comments)
 By Solarina Ho
 TORONTO, May 12 (Reuters) - Toronto's main stock index was
little changed on Thursday afternoon after swinging widely from
a steep early drop into positive territory, as battered energy
issues recovered some ground along with oil prices.
 The energy and materials groups -- which together make up
about 50 percent of the index's weight -- were down 0.3 percent
and 0.51 percent respectively.
 Suncor Energy (SU.TO: Quote) was off 1.73 percent at C$38.63,
while Agnico Eagle (AEM.TO: Quote) was down 1.39 percent at C$59.60.
Uranium miner Cameco Corp (CCO.TO: Quote) slid 5.14 percent to
C$25.30.
 Fears of slower economic growth and lower demand sparked a
fresh wave of selling in commodities in the early part of the
session.
 Oil prices rebounded in volatile trading as a weakening
U.S. dollar offset demand worries. The weaker greenback --
which fell against the euro on expectations of European rate
hikes -- also helped gold, silver and copper pare big losses.
[O/R] [GOL/] [MET/L] [COM/WRAP]
 "It totally reflects the overall feeling of uncertainty in
the market. It's one of those times where investors are really
not sure if the glass is half empty or half full. That's why
we're seeing this sort of action," said Elvis Picardo, analyst
and strategist at Global Securities.
 "We have broken through the support level at 13,500. And of
course the downside action is a familiar one."
 At 3:09 p.m. (1909 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 4.45 points at
13,415.29.
 It had fallen more than 1 percent on Thursday morning and
then turned positive, before retreating again. Six of the
index's 10 sectors were lower.
 "We're getting to the stage where it's overdone. The trade
is all one way: everybody's pessimistic, everybody's negative,
everyone's throwing in the towel," said Rick Hutcheon,
president and chief operating officer of RKH Investments.
 "I think we're in the final throes of a short-term
correction. I think the end is near, probably by the middle of
next week, we'll be heading back up again ... I think we've
paid for it."
 Picardo noted that the factors plaguing market sentiment
were nothing new and have been weighing on the market for a
long time: concerns over China, euro zone debt and the economic
recovery.
 "When you have something like that, sentiment can really
turn on a dime," he said. "So investors have to be prepared for
this sort of volatility."
 Corporate earnings on Thursday were mixed. BCE Inc
(BCE.TO: Quote), which reported a 16 percent rise in operating profit,
was up 2.82 percent at C$37.98, making it the lead blue-chip
gainer. [ID:nN10106124] The overall telecoms group was ahead
0.91 percent.
 Canadian Tire (CTC.TO: Quote) (CTCa.TO: Quote) rose 1.99 percent to
C$62.53 after it reported a higher profit, helped by retail
sales growth. [ID:nN12279700]
 Tim Hortons THI.TO, which posted a higher profit but
missed market estimates, sagged 4.91 percent to C$45.51.
[ID:nN12290169]
 ($1=$0.97 Canadian)
 (Editing by Rob Wilson)