December 14, 2010 / 11:27 PM / 7 years ago

CANADA STOCKS-TSX slips as resources, financials retreat

4 Min Read

   * TSX down 15.78 points, or 0.12 percent, at 13,280.08
 * Five of the 10 main sectors finish lower
 By Solarina Ho
 TORONTO, Dec 14 (Reuters) - Toronto's main stock index finished lower on Tuesday as heavily weighted resource and financial issues retreated, partly pressured by a cautious economic outlook from the Federal Reserve.
 The materials group, home to mining firms, ended down 0.21 percent and led five of the index's 10 main sectors lower.
 Fertilizer producer, Agrium Inc (AGU.TO) was down 1.71 percent at C$81.52, while Potash Corp (POT.TO) was off 0.44 percent at 138.00.
 Barrick Gold (ABX.TO) did not follow modestly stronger bullion prices and fell 1.45 percent to C$53.53. [GOL/]
 "There's a lot of seasonality kicking in ... a lot of the big institutions have pretty well shut down their books for 2010. A number of people just started their Christmas holidays, so the market is becoming extraordinarily thin," said Irwin Michael, portfolio manager at ABC Funds.
 "It doesn't take very much -- a stray order can move a stock either way on the buy side or the sell side to a significant degree."
 The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 15.78 points, or 0.12 percent, at 13,280.08. The market was in positive territory most of the day, but the Federal Reserve's cautious comments about a slow economic recovery sparked a late-session selloff. [ID:nTLAENE627]
 The economy-linked financial issues ended the day down 0.15 percent. Royal Bank of Canada (RY.TO) was the most influential decliner among the banks and gave back 0.91 percent to finish at C$52.34.
 Energy stocks slid 0.18 percent, pulled lower by crude oil prices that were pressured by the Fed's comments, but losses were tempered by cold weather, which boosted heating fuel demand. [O/R] Encana Corp (ECA.TO) fell 1.73 percent to C$28.38.
 Other decliners were consumer discretionary issues, which fell 0.37 percent, and telecoms, which slipped 0.08 percent.
 "Right now, it's a stock-pickers market and it's individual stocks, depending on whatever orders are coming up, that are clearly moving the marketplace," said Michael, adding that the overall trend was still bullish.
 In individual company news, Telus Corp, which said on Tuesday it expected earnings and revenues to increase in 2011, saw its shares rise 0.65 percent to C$46.71. [ID:nN14259944]
 Gold Wheaton GLW.TO, which was acquired by Franco-Nevada (FNV.TO) on Monday and received a ratings upgrade by RBC Capital Markets on Tuesday, rose 2.81 percent to C$5.13. [ID:nSGE6BD0CD]
 Lululemon Atheletica LLL.TO shares, which have gained more than 25 percent since the company posted strong quarterly results last week and raised its outlook, saw investors take some profit on Tuesday. The stock was among the lead net losers, falling 3.14 percent to C$68.27.
 ($1=$1.01 Canadian)  (Reporting by Solarina Ho; editing by Rob Wilson)                                        

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