CANADA STOCKS-TSX falls for 2nd day as miners struggle

Thu Nov 10, 2011 5:04pm EST
 
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 * TSX down 47.35 pts, or 0.4 pct, to 12,108.87
 * Materials, financials drag on index
 * TransCanada weaker after Keystone decision
 * Canadian Tire, Tim Hortons rise on earnings
 (Adds analyst comment, details)
 By Jon Cook
 TORONTO, Nov 10 (Reuters) - Canadian stocks fell for a
second straight session on Thursday, touching a one-week low in
choppy trading, as a fall in copper and gold prices weighed on
the influential mining sector.
 Copper extended losses into a fifth day as demand prospects
dimmed due partly to Europe's debt woes. Gold prices fell as
some safe-haven buying eased with nervous investors reacting to
headlines painting a mixed picture for Europe. [MET/L] [GOL/]
 The heavily-weighted materials sector, home to base metal
and gold miners, fell more than 1 percent. Financial stocks,
down 0.6 percent, were the next biggest drag.
 "The groups that are most vulnerable to events out of
Europe are the financials and the commodities," said Elvis
Picardo, strategist and vice president of research at Global
Securities.
 Base metals miners fell 2.5 percent, led by First Quantum
Minerals (FM.TO: Quote), down 7.9 percent to C$18.20. The miner's
stock has dropped more than 20 percent the last two sessions.
 Shares of Silver Standard Resources (SSO.TO: Quote) also weighed
as they plunged to their lowest point in nearly three years, a
day after the company cut the reserves at its Pirquitas mine in
Argentina by more than half. [ID:nNL3E7MA0XP]
 TransCanada Corp (TRP.TO: Quote), down 1.8 percent to C$39.85, was
the third most influential decliner. It fell after a U.S. move
to put off a decision on whether to approve its proposed $7
billion Keystone XL pipeline for 18 months. [ID:nN1E7A80X4]
 Canadian lenders, which have less exposure to risky
European debt holdings than their global counterparts, were
down slightly. Canadian Imperial Bank of Commerce (CM.TO: Quote) was
the biggest drag on the financials sector, falling 1.6 percent
to C$71.45.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 47.35 points, or 0.4 percent, at
12,108.87, clawing back after falling more than 1 percent to a
session low of 12,025.57.
 The index had dropped 2.7 percent the previous session, its
biggest fall in a month, as Italian bond yields rose above 7
percent and sparked widespread selling.
 U.S. stocks, crude oil and the euro gained on Thursday as
concerns that the euro zone might break up eased and a closely
watched Italian debt auction came off better than many feared,
albeit at a high cost. [MKTS/GLOB]
 "The liquidity has come out of the market a lot so it's not
hard to move this market around plus or minus 1 percent on very
little," said Paul Hand, managing director at RBC Capital
Markets. "There's obviously massive headline risk on any given
day."
 Energy stocks, up 0.2 percent, responded to the rise in oil
prices, as U.S. December crude rose $2 to approach $100 a
barrel, the highest for a front-month contract since July 26.
[O/R]
 Adding to the positives was a good earnings day for
Canadian retailers, which lifted the consumer discretionary
goods subindex  1 percent.
 Canadian Tire Corp's (CTC.TO: Quote) (CTCa.TO: Quote) class A shares rose
more than 4 percent to C$62 after it reported a 36 percent jump
in earnings, benefiting from its August acquisition of the
Forzani sporting-goods chain. [ID:nN1E7A90F1]
 Tim Hortons Inc THI.TO shares were up 1.1 percent to
C$50.09 after Canada's top restaurant chain reported a 40
percent jump in third-quarter profit on strong sales, despite
challenging North American operating conditions.
[ID:nL3E7MA0BO]
 "The elements seem to be in place for a seasonal rally, but
Europe continues to be the biggest overhang on the markets as a
whole," Picardo added.
 (Editing by Jeffrey Hodgson)