CORRECTED - CANADA STOCKS-Barrick's copper deal pushes TSX lower

Mon Apr 25, 2011 5:09pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 (Corrects percent changes in fourth bullet, in the 6th
paragraph for the gold subgroup, and the 7th paragraph for the
materials group)
 * TSX falls 0.46 percent to 13,907.32
 * Barrick to buy Equinox for more than C$7 billion
 * Barrick falls to 3-week low, top heavyweight decliner
 * 6 of index's 10 sectors weaker, materials falls 1.43 pct
 (Updates to close)
 TORONTO, April 25 (Reuters) - Toronto's main stock index
ended a three-day upswing on Monday as investors dumped Barrick
Gold Corp ABX.TO after it struck an all-cash deal to buy an
Australian copper miner.
 Barrick ABX.TO, the world's largest gold miner, plunged
more than 6 percent to C$49.44, its lowest point in more than
three weeks, after it said it will to buy Equinox Minerals
EQN.TO EQN.AX for about C$7.3 billion. That bid topped an
offer from China's Minmetals Resources 1208.HK and was seen
as a big bet on soaring copper demand.
 Barrick finished down 6.73 percent at C$49.50, suggesting
not all investors back its move to diversify. The gold miner
was the index's top decliner, and had six times more drag on
the overall index than Canadian Natural Resources CNQ.TO, the
next heaviest loser.
 Equinox surged 12 percent early on, then pared gains to
finish up 11.6 percent at C$8.37.
 "Barrick explains the move down," said Francis Campeau,
broker at MF Global Canada in Montreal. "I'm wondering if the
gold players are going to steer away from Barrick to get to a
more gold play."
 But almost all gold-mining issues came under pressure on
Monday, driving down the index's gold subsector by 2.55
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended down 64.70 points, or 0.46 percent, at
13,907.32. Six of the index's 10 main groups were weaker, led
by a 1.43 percent drop in the materials group, which fell on
the steep selloff in gold-mining issues.
 ($1=$0.95 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)