CANADA STOCKS-TSX tumbles as commodity prices retreat

Wed Oct 27, 2010 4:45pm EDT
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   * TSX ends down 117.43 points at 12,567.25
 * Eight of 10 sectors finish lower
 (Adds details on banks)
 By Claire Sibonney
 TORONTO, Oct 27 (Reuters) - Toronto's main stock index fell
broadly on Wednesday as worries that market expectations of new
U.S. economic stimulus measures were overblown boosted the U.S.
dollar and hurt commodity prices.
 With the U.S. mid-term elections and a U.S. Federal Reserve
meeting on tap for next week, traders also moved to guard
against what could be an erratic period in equities on both
sides of the border.
 Prices for oil, gold and base metals all slipped as a
rising greenback made commodities more expensive for holders of
other currencies, pushing key resource sectors down.
 Both energy and materials skidded 1.1 percent.
 Among the biggest decliners were Suncor Energy SU.TO,
down 2.4 percent at C$32.55, Barrick Gold Corp ABX.TO, down
1.8 percent at C$46.94, and Teck Resources TCKb.TO, which
fell 1.4 percent to C$45.31.
 Diversified miner Teck said late Tuesday its third-quarter
operating profit rose sharply, but its earnings fell short of
market expectations partly due to higher
 Investors had been pricing in large scale U.S. Treasury
bond purchases by the Fed, lifting equities, commodities and
emerging market assets in recent weeks, while the greenback
came under pressure against other currencies.
 "The market was priced for perfection and perhaps that's
not what we're going to see next week," said Philip Petursson,
director of the portfolio advisory at MFC Global Investment
 "As such, it's better to just take money out of what's been
a very strong rally, wait it out for a week and then see where
we end up."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 117.43 points, or 0.93 percent, at
12,567.25. Eight of the 10 main sectors were weaker, including
economically sensitive financials, off 0.7 percent.
 Royal Bank of Canada RY.TO shed 1.3 percent to C$54.92
and Toronto-Dominion Bank TD.TO was 0.9 percent lower at
  Financials were also pressured by remarks from Canada's
banking watchdog that lenders should take a cautious approach
to raising dividends or making big acquisitions in a
still-uncertain regulatory environment. [ID:nN27251914]
 In individual company action, Potash Corp POT.TO reversed
earlier losses to gain 1.3 percent to C$151.80. The fertilizer
giant filed an amended complaint on Tuesday in its lawsuit
against hostile suitor BHP Billiton BHP.AX. [ID:nN26177952]
 Research In Motion RIM.TO jumped 2.2 percent to C$57.39,
after it introduced its new BlackBerry Bold 9780 smartphone.
 Canadian Pacific Railway CP.TO dropped 2.1 percent to
C$65.64, despite reporting a 28 percent jump in quarterly
operating profit, as investors worried that growth would slow.
 Corus Entertainment CJRb.TO added 2.5 percent to C$22.08,
after the  media company reported a 64 percent drop in
fourth-quarter profit, hurt by higher expenses, but raised its
dividend 25 percent. [ID:nN27141854]
 TMX Group X.TO gained 1.9 percent at C$34.18, after the
Toronto Stock Exchange operator boosted its dividend for the
first time since 2007 and reported a 22 percent rise in
quarterly profit as a move to diversify began to bear fruit.
 ($1=$1.03 Canadian)
 (Reporting by Claire Sibonney; editing by Rob Wilson)