CANADA STOCKS-TSX dips as Fed undermines resource rally

Wed Jun 22, 2011 5:05pm EDT
 
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   * TSX ends down 2.76 points, or 0.02 percent, 13,060.56
 * Six of the 10 main groups finish higher
 * Fed lowers U.S. GDP forecast, gives no hints on stimulus
 (Updates to close, adds details, comments)
 By John McCrank
 TORONTO, June 22 (Reuters) - Toronto's main stock index
gave up early gains to end marginally lower on Wednesday, after
the U.S. Federal Reserve lowered its forecast for U.S. economic
growth, which outweighed a rise by gold and energy issues on
firmer commodity prices.
 The index had been up nearly 100 points, but headed lower
along with U.S. markets after the Fed cut its forecasts without
signaling any new stimulus measures. [ID:nN1E75K22F] The United
States is by far Canada's biggest trading partner.
 "The recovery continues, slower than anticipated, and you
have the numbers that sometimes cause you a little bit of
concern," said Fred Ketchen, director of equity trading at
ScotiaMcLeod.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended down 2.76 points, or 0.02 percent, at
13,060.56. Six of the index's main groups were higher, though
only slightly so.
 The decline came after Tuesday's 1.6 percent jump, its
biggest one-day rise in three months.
 Of the gainers, the index's hefty materials group ended up
0.37 percent, while its gold-mining subgroup rose 1.43 percent
on the back of the stronger bullion prices. [GOL/]
 Goldcorp (G.TO: Quote) was the most influential gainer of the day,
up 0.97 percent at C$48.14, while Barrick Gold (ABX.TO: Quote) rose
1.42 percent to C$43.57. Eldorado Gold (ELD.TO: Quote) was up 5.4
percent at C$14.43.
 Gold prices rallied for a third consecutive session, though
eased late in the day on the back of European sovereign debt
fears. [ID:nN1E75K22F]
 "The Greek situation still has not been solved and will
keep on coming up very frequently," said Sal Masionis, a
stockbroker at Brant Securities.
 Gold miners also got a boost from the positive market
reaction to Iamgold's (IMG.TO: Quote) dividend increase late on
Tuesday, said Gavin Graham, president of Graham Investment
Strategy. [ID:nASA02CL6]
 "That's just the latest in a string of profitable gold
companies producing mines, actually paying some of that out to
their shareholders," he said.
 The energy group was up 0.12 percent, supported by firmer
oil prices, but shed much of its earlier gains after the Fed
comments. [O/R].
 Suncor Energy (SU.TO: Quote) rose 0.29 percent to C$37.53, while
Athabasca Oil Sands ATH.TO was up 3.53 percent at C$15.53
(CNQ.TO: Quote).
 U.S. crude ended up more than $1 at $95.41 a barrel after a
government report showed U.S. stockpiles fell more than
expected. [ID:nWEN4604]
 In company news, the London Stock Exchange (LSE.L: Quote)
sweetened its friendly bid for the operator of the Toronto
Stock Exchange to $4.1 billion on Wednesday, topping a hostile
offer from a Canadian consortium. TMX shares ended up 1.03
percent at C$44.25. [ID:nN1E75L17E]
 Shares of Bombardier sagged 4.84 percent to C$6.69 after
one of the main customers for its new CSeries jet, Republic
Airways Holdings RJET.O, placed a big order with rival Airbus
EAD.PA. [ID:nN1E75L15Z]
 Shares of beleaguered Chinese forestry company Sino-Forest
TRE.TO surged nearly 50 percent to C$3.00 as speculative
investors jumped back into the stock after a sharp selloff
earlier in the week. [ID:nN1E75L0O7]
 ($1=$0.97 Canadian)
 (Additional reporting by Solarina Ho and Trish Nixon; editing
by Rob Wilson)