CANADA STOCKS-TSX ends lower as golds, banks retreat

Mon Aug 24, 2009 4:56pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX down 41.21 points, or 0.38 percent, at 10,789.97
 * Bank and gold shares biggest drag on index
 (Adds details, quotes)
 By Jennifer Kwan
 TORONTO, Aug 24 (Reuters) - Toronto's main stock index
closed lower on Monday after four straight gaining sessions, as
gold miners retreated on lower bullion prices and financials
sagged ahead of quarterly results from the country's banks.
 Among the most influential movers on the downside were Bank
of Montreal (BMO.TO: Quote) off 3.6 percent at C$49.01, and Royal Bank
of Canada (RY.TO: Quote), which fell 1.1 percent to C$50.70. The
broader financial sector fell 0.7 percent.
 There are "jitters" ahead of bank earnings this week, which
kick off when Bank of Montreal reports results on Tuesday, said
Francis Campeau, a broker at MF Global Canada in Montreal.
 "They had a good run. People want to protect recent gains
and they might come back into the market after the numbers,"
Campeau said.
 The financial sector is  up about 80 percent from
early March.
 Virtually nobody sees Canadian banks rattling investors
with big losses when they start reporting third-quarter
earnings. Profits are likely to come in between 10 percent and
16 percent lower, a result that investors are expected to take
in stride, given the economic climate. [ID:nN2165076]
 However, analysts say below the surface the banks could
show some signs of wear and tear.
 The S&P/TSX composite index .GSPTSE finished the day down
41.21 points, or 0.38 percent, at 10,789.97, with seven of its
10 main groups lower. Earlier, it had risen 72 points, in part,
on firm oil prices. The big energy sector climbed 0.4 percent.
 The market kicked off the week in an upbeat mood as
reassurances from the world's central bankers spurred optimism
about the economic recovery.
 Global bankers, gathered at Jackson Hole, Wyoming, over the
weekend, said the global recession was nearing a close,
although it would be a long, slow climb back to normal growth.
 But caution ahead of the bank earnings this week kicked in,
said Sal Masionis, stockbroker at Brant Securities, dragging
the index lower by early afternoon.
 "The main thing is what writeoffs they're taking and how
does it look for the next quarter," he said.
 Another source of weakness for the TSX came from the
materials sector, home to miners and fertilizer companies, as
the price of gold slid below $945 an ounce on pressure from a
firmer U.S. dollar. [ID:nN24160851]
 Shares of Kinross Gold (K.TO: Quote) fell 1.5 percent to C$20.67,
while Goldcorp (G.TO: Quote) sank 1.3 percent to C$38.35.
 Research In Motion RIM.TO also weighed on the broader
market, slipping 1.9 percent at C$82.15. The broader
information technology sector was down 2.3 percent.
 The blue chip S&P/TSX 60 index  closed 3.28 points
lower, or 0.5 percent, at 648.54.
 ($1=$1.08 Canadian)
 (Reporting by Jennifer Kwan; editing by Rob Wilson)