CANADA STOCKS-TSX ticks lower as golds weigh

Wed Dec 15, 2010 10:52am EST
 
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* TSX dips 0.03 percent to 13276.28

* Golds slide lower with bullion price (Adds details)

TORONTO Dec 15 (Reuters) - Toronto's main stock index was down slightly on Wednesday morning as the materials group weighed, while most other sectors reversed direction and headed higher.

Gold-mining shares were the main culprit limiting gains on the broader market, sliding with the price of gold as the U.S. dollar rose broadly, with the euro coming under selling pressure as ratings agency Moody's put Spain's rating on review for a possible downgrade. [GOL/]

Barrick Gold ABX.TO lost 1.18 percent to C$52.90, while Kinross K.TO shed 1.01 percent to C$18.44. Yamana Gold YRI.TO fell 1.2 percent to C$12.50.

At 10:42 a.m. (1542 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 3.8 points, or 0.03 percent, at 13276.28, after a brief turn higher.

However, seven of the index's 10 main groups had turned higher, leaving the materials groups as the main drag on the resource-heavy index.

"To me, it's still got a healthy tone. We've moved up very quickly here and you would think the natural inclination is to take profits," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

"But when the market gets down a little bit, money seems to be coming in and that says to me it's the real deal, meaning that 2011 is still a good place for the stock market and there's still a fair bit of cash on the sidelines."

Shares of Uranium One UUU.TO slid more than 6 percent to C$4.40 after it said it has the option to buy all the shares of Mantra Resources MRU.AX to be acquired by Russia's ARMZ, its largest shareholder, for ARMZ's buy price plus additional expenditures. [ID:nN15127165]

In economic news, Canadian factory sales grew faster than expected in October while the home resale market appeared stable in November, setting the stage for steady but tame economic growth in the final days of this year. [ID:nN15123908] (Reporting by Ka Yan Ng; editing by Rob Wilson)