CORRECTED - CANADA STOCKS-TSX retreats as materials, financials drag

Fri Feb 18, 2011 4:59pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 (Corrects paragraph 2 to show five of index's groups lower,
not six)
 * TSX down 13.04 points or 0.09 pct, at 14.123.11
 * Five of the 10 main groups lower
 * Up 2.5 percent on the week
 (Updates with details, comment)
 By Solarina Ho
 TORONTO, Feb 18 (Reuters) - Toronto's main stock index
halted a four-day winning streak to close modestly lower on
Friday, pressured by monetary tightening in China and weakness
in mining and financial issues.
 Five of the index's 10 main groups were lower. The
materials group, which makes up just under a quarter of the
index's weigh and is home to big mining firms, was down 0.51
 Diversified miner Teck Resources TCKb.TO led the retreat,
sagging 2.76 percent to C$54.33. Potash Corp POT.TO slipped
3.69 percent to C$59.17, while Agnico Eagle AEM.TO was off
2.05 percent at C$70.26. [MET/L] [GOL/]
 "We're seeing some weakness in a lot of the basic material
companies," said Youssef Zohny, portfolio manager at Van Arbor
Asset Management.
 Overseas, China raised required bank reserves to a record
19.5 percent, the latest move by the huge consumer of
commodities like oil and metals to curb inflation.
 "I think, near term, China's going to be a big focus.
They're having some problems with a property bubble and
inflation," Zohny said.
 "We're probably going to see some more tightening from the
Bank of China ... That's going to put pressure on the
commodities-heavy TSX."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 13.04 points, or 0.09 percent at
14,123.11. The index hovered near 2-1/2 year highs, after
surging past the 14,000 mark earlier in the week. It gained
more than 2.5 percent on the week.
 Financial stocks, another index heavyweight, fell 0.24
percent, following six straight sessions of gains that saw the
group advance 3 percent.
 Sun Life Financial SLF.TO was down 0.3 percent at C$32.92
while Toronto-Dominion Bank TD.TO fell 0.93 percent to
 Offsetting losses was a 0.31 percent gain among energy
issues. Talisman Energy TLM.TO was up 2.46 percent to C$24.19
while Husky Energy HSE.TO climbed 0.9 percent to C$29.08.
 "In terms of energy, that's one of the bright spots today.
Tension in the Middle East continues to keep prices elevated,"
said Zohny. [ID:nL3E7DI065]
 Some key gold miners found strength in firmer bullion
prices. The safe-haven metal was supported by fears over a
European debt crisis, rising inflation and growing unrest in
the Middle East. [GOL/] [ID:nLDE71H0VI]
 Barrick Gold ABX.TO rose 1.82 percent to end at C$50.82.
 The TSX will be closed on Monday for Ontario's Family Day
holiday, while four other province, including Alberta, are also
observing holidays on Monday.
 ($1=$0.99 Canadian)