CANADA STOCKS-TSX closes lower on euro zone rescue doubts

Tue Oct 25, 2011 5:03pm EDT
 
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   * TSX ends down 52.53 points, or 0.43 pct, at 12,109.75
 * Pulls back from one-month high hit earlier in session
 * Golds lead gains, financials drag
 * European debt crisis uncertainty weighs
 (Updates prices, adds details, comments)
 By Jon Cook
 TORONTO, Oct 25 (Reuters) - Toronto's main stock index
ended moderately lower on Tuesday, giving up earlier gains that
took it to a one-month high, as pessimism set in over an
upcoming European summit.
 World stocks stumbled after the cancellation of a meeting
of European finance ministers raised doubts that an upcoming
summit will result in a clear plan to rein in Europe's debt
crisis. [MKTS/GLOB]
 "Today's decline is a natural corollary to the runn-up
we've had since the first week of October that seemed to have
peaked in a big bout of euphoria yesterday," said Elvis
Picardo, strategist and vice president of research at Global
Securities in Vancouver.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended down 52.53 points, or 0.43 percent, at
12,109.75.
 After being up for most of the day, 8 of the TSX index's 10
main sectors finished lower, with energy and financials leading
the charge.
 Canadian financial shares have frequently moved in sympathy
with their European peers, which have see-sawed on developments
in the European debt crisis. Toronto-Dominion Bank (TD.TO: Quote) was
the market's biggest laggard, falling 1.7 percent to C$73.68.
 Gold miners were among Toronto's most heavily weighted
gainers. Bullion prices roared to one of the biggest one-day
rallies in years, as the euro zone jitters and gloomy U.S.
consumer data rekindled a dormant safe-haven bid and triggered
a flurry of technical buying. [GOL/]
 Barrick Gold Corp (ABX.TO: Quote) closed up 3.4 percent at
C$48.05. Goldcorp Inc (G.TO: Quote) gains 4.1 percent to C$48.34.
 Miner Alacer Gold Corp's (ASR.TO: Quote) shares rose 5.5 percent
to C$11.56 a day after the company's board approved expansion
of its South Kalgoorlie gold operations in Australia.
 Meanwhile, Potash Corp (POT.TO: Quote) shares fell 2.5 percent to
C$49.21 on news its competitor, Russian miner Uralkali
(URKA.MM: Quote), announced plans to boost capacity 80 percent by
2021.
 On the Canadian earnings front, Canadian Pacific Railway
(CP.TO: Quote) slipped 0.5 percent to C$59.52 after the country's No.
2 railway reported a lower third-quarter profit as fuel costs
rose 43 percent. [ID:nL3E7LP223]
 In other news, the Bank of Canada held its key interest
rate steady, dropping any mention of the need to raise rates as
it slashed its growth and inflation projections.
[ID:nN1E79O0F9]
 ($1=$1.01 Canadian)
 (Editing by Jeffrey Hodgson)