September 28, 2010 / 2:34 PM / 7 years ago

CANADA STOCKS-TSX drops as U.S. consumer data weighs

 *TSX down 60.17 points, or 0.49 percent, at 12,130.43
 *All of index’s 10 main sectors lower
 *U.S. consumer confidence data weighs on sentiment
 *RIM unveils tablet computer, shares down 3.3 pct   (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Sept 28 (Reuters) - Toronto’s main stock index fell on Tuesday morning as weak commodity prices dragged its key resource pillars lower, while weak U.S. economic data weighed on investor sentiment.
 U.S. consumer confidence in September ebbed to its lowest level since February, driven by deteriorating labor-market and business conditions. The consumer report undermined mildly positive U.S. home price data. [ID:nN28171795]
 The index’s growth-sensitive energy and materials sectors, both down 0.6 percent, fell as oil prices dropped below $76 a barrel, while gold and base metals prices were also lower. [O/R] [MET/L] [GOL/]
 Key names on the downside included Suncor Energy (SU.TO), down 0.7 percent, Barrick Gold (ABX.TO), down 0.9 percent, and Teck Resources TCKb.TO, which fell 1 percent.
 “We have a weaker U.S. consumer confidence number that came out, which is not helping so much,” said Francis Campeau, broker at MF Global Canada in Montreal.
 “It just shows that consumer optimism is still falling. Usually it’s a proxy of retail sales or how consumers will be spending, so you might see a risk of an increased savings rate.”
 At 10:09 a.m. (1409 GMT), the S&P/TSX composite index .GSPTSE was down 60.17 points, or 0.49 percent, at 12,130.43, with all of its key sectors lower.
 Campeau said that after several weeks of strong market gains there’s “a bit of profit-taking”.
 Research In Motion RIM.TO dropped 3.3 percent to C$48.02 after unveiling a tablet computer aimed at its core business customers as it tries to gain a foothold in a fast-growing market dominated by Apple’s (AAPL.O) consumer-friendly iPad. [ID:nN27231916]
 Potash Corp (POT.TO) was largely flat, up just 0.1 percent at C$150.61, after a U.S. federal judge said on Monday he would allow the discovery process to proceed in a lawsuit filed by Potash to fend off BHP Billiton’s (BHP.AX) $39 billion hostile takeover bid. [ID:nN27253534]
 Ivanhoe Mines (IVN.TO) rose 2.3 percent to C$24.39 after it said on Tuesday it has discovered a new mineralized zone at its Oyu Tolgoi copper-gold project in Mongolia. [ID:nN28153551]
 ($1=$1.04 Canadian)  (Reporting by Jennifer Kwan; editing by Peter Galloway)                                        

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