CANADA STOCKS-Gold miners drag TSX down, Greece weighs

Thu Jun 16, 2011 12:34pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * TSX down 22.62 points, or 0.17 percent, at 12,949.41
* Six of the 10 main groups slip
* RIM to report Q1 results after market close
* Greek debt crisis, mixed U.S. data drag on sentiment
By Trish Nixon
TORONTO, June 16 (Reuters) - Toronto's main stock index was
lower at midday on Thursday as gold mining shares tumbled and
Greece's debt woes cast a pall on market sentiment.
 The index's materials group, home to miners, was down 1.07
percent, tracking lower with copper prices, which fell on a
stronger U.S. dollar, fears of weak U.S. economic growth, and
worries about what will happen if the Greek debt crisis stays
 Uncertainty over Greece kept safe-haven bullion steady, but
prices were off Wednesday's highs, which weighed on gold-mining
shares. The index's gold-mining subgroup fell 1.1 percent.
[MET/L] [GOL/]
 Goldcorp G.TO was off 1.60 percent at C$46.01 and was the
most influential decliner on the index. Barrick Gold ABX.TO
fell 0.84 percent to C$42.69, and Kinross Gold K.TO dropped
1.59 percent to C$14.87.  
 Shortly after noon, the Toronto Stock Exchange's S&P/TSX
composite index .GSPTSE was down 22.62 points, or 0.17
percent, at 12,949.41, after hitting its lowest level in more
than six months, 12,885.54, earlier in the day. The last time
it was that low was Nov. 30, when it hit 12,883.27.
 "The Canadian market is down somewhat, reflecting
continuing gloom on major issues on a global basis, after
having one pretty decent day two days ago," said Michael
Smedley, chief executive of Morgan Meighen & Associates Ltd.
He said one key stock to watch on Thursday was Research In
Motion RIM.TO, which was due to report its first quarter
results after markets close "in an atmosphere of growing
antagonism by the market".
The BlackBerry maker, up 1.19 percent at C$34.87, warned in
April that lackluster sales in the United States and Latin
America would likely mean lower earnings than in the previous
four quarters. [ID:nN28282063]
Mixed U.S. economic data weighed on overall sentiment. A
gauge of regional manufacturing activity slumped to a near
two-year low in June, suggesting U.S. factories were faltering
and overshadowing better than expected readings on the labor
and housing markets. [ID:nN16172420]
 Escalating tensions in Greece further dented investor
confidence, but some hoped that a second debt bailout for
Greece would bring an end to this week's market volatility.
"People are pretty confident that we're going to see some
kind of resolution by either this weekend or soon because there
is no alternative really, they have to accept some kind of
austerity," said Barry Schwartz, vice president and portfolio
manager at Baskin Financial Services.
International lenders scrambled to save Greece from default
as Prime Minister George Papandreou struggled to quell a revolt
in his socialist party against EU/IMF-ordained austerity
measures. [ID:nLDE75F0TU] 
($1=$0.98 Canadian)
 (Reporting by Trish Nixon and Solarina Ho; editing by Peter