CANADA STOCKS-TSX falls as U.S. results spur profit-taking

Tue Jul 28, 2009 10:36am EDT
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 * TSX down 148.82 points at 10,608.61
 * Materials sector leads selloff
 * Weak U.S. corporate earnings prompt consolidation
 (Adds details and comments)
 By Frank Pingue
 TORONTO, July 28 (Reuters) - Toronto's main stock index was
lower on Tuesday morning as some disappointing quarterly
corporate results in the United States convinced investors to
pocket some of the market's sharp recent gains.
 But the early selloff, which affected all sectors, came a
day after the TSX index rallied to its highest level in nearly
10 months and after a 44 percent climb from the five-year low
it fell to in March.
 "When you have that kind of move up it wouldn't surprise me
at any point in time to see the market go through some period
of consolidation," said Peter Chandler, senior vice-president
at Canaccord Capital in Waterloo, Ontario. "So ... it's just a
catch of breath after an unparalleled rise."
 The slide was headed by the index's mining-laden materials
group, which fell 2.2 percent on a drop in gold prices.
 Shares of miner Goldcorp G.TO, the biggest drag on the
index, were off 4 percent at C$39.89, while Barrick Gold Corp
ABX.TO was down 2.2 percent at C$37.00.
 The selloff came after Viacom Inc VIAb.N and Office Depot
Inc ODP.N both delivered disappointing quarterly results and
spurred investors to seek more evidence of economic rebound.
 At 10:15 a.m. (1415 GMT), the S&P/TSX composite index
.GSPTSE was down 148.82 points, or 1.38 percent, at
 Shares of Rogers Communications Inc RCIb.TO, another key
drag on the index, fell 6 percent to C$29.05 after the company
slashed its revenue outlook and said its wireless subscribers
were cutting back on spending. [ID:nN2890483]
 ($1=$1.08 Canadian)
  (Editing by Peter Galloway)