CANADA STOCKS-TSX flat after volatile open

Thu Nov 13, 2008 10:39am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

*Index flat after Wednesday's 5.3 pct slump

*Loblaw rises sharply after quarterly results (Adds details)

TORONTO Nov 13 (Reuters) - Toronto Stock Exchange's main index was flat on Thursday morning as strength in energy and materials shares kept the index higher, while financials and information technology capped the gains.

Heavily weighted stocks that rose included Barrick Gold ABX.TO, up 5 percent at C$27.00, and Suncor Energy SU.TO, up 3 percent at C$24.06.

Limiting gains were Research In Motion RIM.TO, down 8 percent at C$49.32, and Manulife Financial MFC.TO, lower by 6 percent at C$22.05.

The energy sector was up 1 percent and materials rose 1.6 percent on firmer commodity prices, while the financial services sector was a drag on the market, down 1.6 percent, while information technology slipped 2.5 percent.

Shortly before 10:30 a.m., the S&P/TSX composite index .GSPTSE was down 1.91 points at 8,920.66, with four of its 10 main groups lower. The index fell 5.3 percent the day before.

After the market open on Thursday, the index swung more than 100 points in both directions.

"As we've seen of late any sort of rally has been pretty short-lived," said Michael Sprung, president at Sprung & Co. Investment Counsel of the initial market strength.

"That's really stemming from the wave of redemptions that are forcing mutual funds and hedge funds to get out of the market here no matter what the price to meet those redemptions. That's one of the primary catalyst behind it in addition to the fears of quite a severe recession as a possibility."

On the upside, Loblaw Companies Ltd L.TO, a top net gainer, rose 10.8 percent to C$29.86 after Canada's biggest supermarket chain reported higher quarterly profit helped by a boost in same-store sales, but warned that the slowing economy could spoil its performance for the remainder of the year. [ID:N13466147] ($1=$1.23 Canadian) (Reporting by Jennifer Kwan; Editing by Peter Galloway)