August 14, 2008 / 3:38 PM / 9 years ago

UPDATE 1-Toronto stocks choppy amid mixed resources, data

3 Min Read

(Adds details)

* TSX rebounds from early retreat

* Energy, materials pressure index

* Cameco rises after quarterly results

TORONTO, Aug 14 (Reuters) - Toronto Stock Exchange's main index was flat on Thursday as a raft of quarterly results, U.S. economic data and a privatization deal for Sleep Country Canada Income Fund Z_u.TO made for a choppy session.

Shortly after the open, the index slipped 100 points lower, as U.S. data showed consumer price pressures mounted in July and the labor market weakened.

It eventually turned positive, but by late morning the S&P/TSX composite index .GSPTSE was down 19.21 points, or 0.14 percent, at 13,358.01, with four of its 10 main groups lower.

The see-saw action reflects a market that gets over- and undervalued, and as sentiment ebbs and flows there are "wild gyrations", said Robert Floyd CFA, president of R.A. Floyd Capital Management Inc.

"People get very emotional as there is a lot of volatility out there, so when they see a headline number they hit for a sell button fairly quickly," Floyd said.

The market was kept slightly lower by the key energy and materials sectors, down 0.6 percent and 1.3 percent, respectively, amid mixed oil and gold prices.

Niko Resources Ltd (NKO.TO) slipped C$1.50, or 1.8 percent, to C$81.00, while Cameco Corp (CCO.TO) rose 24 Canadian cents, or 0.7 percent, to C$33.13.

Cameco said its quarterly profit fell 27 percent, as lower sales of uranium, fuel services and power more than offset higher uranium prices and stronger gold revenue.

The financial and technology sectors led the upside, rising 0.6 percent and 1.3 percent.

In company news, Birch Hill Equity Partners Management Inc. and Westerkirk Capital Inc. announced plans to buy Sleep Country Canada Income Fund Z_u.TO in a cash deal valued at about C$356 million, the companies said on Thursday.

Shares of Sleep Country Canada, Canada's largest mattress retailer, soared 36 percent, or C$5.80, to C$21.85.

In another privatization plan, Clearwater Seafoods Income Fund's CLR_u.TO announced a deal with a consortium led by Clearwater Fine Foods Inc. The partnership is offering C$4.50 a unit in a transaction valued at about nearly C$40 million.

Units of Clearwater Seafoods rose 67 Canadian cents, or nearly 18 percent, to C$4.42. ($1=$1.06 Canadian) (Reporting by Jennifer Kwan; editing by Rob Wilson)

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