CANADA STOCKS-TSX retreats on golds, RIM; oils cushion slide

Tue May 31, 2011 5:50pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * TSX down 26.78 points, or 0.19 percent, at 13,802.88
 * Six of the 10 main groups retreat
 * Index falls 1 percent in month of May
 (Updates with details, comment)
 By Solarina Ho
 TORONTO, May 31 (Reuters) - Toronto's main stock index
ended the day and month lower on Tuesday, weighed down by
retreating gold miners, while a modest eleventh-hour rebound by
energy issues helped pare some earlier losses.
 The broader materials sector, where mining firms are
grouped, slid 0.59 percent, with Kinross Gold (K.TO: Quote) falling
3.06 percent to C$15.22 and Goldcorp (G.TO: Quote) off 1.2 percent at
C$48.46.
 Gold prices dipped modestly after touching four-week highs
as upbeat news that Germany could ease the way for Greece to
receive a debt bailout prompted investors to look to riskier
assets and away from the safe haven of bullion. [GOL/]
 The tech group advanced 0.42 percent despite a 4.37 percent
tumble by BlackBerry maker Research In Motion RIM.TO, which
finished the session at C$41.35. It was the single most
influential decliner on the composite index.
 This followed news that mobile phone maker Nokia NOK1V.HE
(NOK.N: Quote) slashed its sales and profit outlook, and scrapped
forecasts for 2011 due to tumbling prices and intense
competition from Apple (AAPL.O: Quote) and Google (GOOG.O: Quote) in the
smartphone sector. [nLDE74U1CO]
 "Investors are fairly or unfairly making the link that if
Nokia is not competing, then Research In Motion is also going
to have trouble," said Barry Schwartz, portfolio manager at
Baskin Financial Services.
 "Certainly, the numbers show it's really a two horse race.
It's iPhone and Android, and Research In Motion is losing
market share hand over fist."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE finished the session down 26.78 points, or 0.19
percent, at 13,802.88. Six of the 10 main groups were lower.
 The TSX ended the month about 1 percent lower.
 "We have a couple of good days, a couple of bad days ...
there doesn't seem to be anything out there that's grabbing
anybody," said John Ing, president of Maison Placements
Canada.
 Early session gains quickly evaporated as U.S. data
underscored the tepid recovery south of the border. Business
activity in the U.S. Midwest grew much less than expected in
May and consumers turned more pessimistic as well, reports
showed on Tuesday. [nN9E7G401Z] [nN9E7G401Y]
 "Developments in the States  ... it seems to be
positionings are hardening more than anything else. That will
be a looming factor," noted Ing.
 Energy issues, which spent much of the session in retreat,
swung into positive territory, rising 0.06 percent.
 Influential advancers like Crescent Point Energy (CPG.TO: Quote)
and Arc Resources (ARX.TO: Quote) helped offset big index draggers
like Suncor Energy (SU.TO: Quote), which fell 1.32 percent to C$40.45.
Crescent Point finished up 1.89 percent at C$46.92 while Arc
jumped 3.16 percent to C$26.79.
 Crude futures moved higher following a pipeline closure and
a decline in the U.S. dollar. TransCanada Corp (TRP.TO: Quote), whose
Keystone line was shut over the weekend due to a new leak, was
the second most influential advancer, rising 0.91 percent to
C$43.39. [O/R] [ID:nN31283793]
 Bank of Nova Scotia (BNS.TO: Quote), bucked the recent bank
earnings trend and reported sharply higher profits that topped
expectations. It was the most important mover on the positive
side, rising 0.64 percent to C$59.36. [ID:nN31281525]
 The overall financials group was off 0.06 percent,
however.
 Intact Financial Corp (IFC.TO: Quote) shares, which were halted,
could be in focus on Wednesday following news that the
insurance firm bought the Canadian arm of French insurer AXA
Group (AXAF.PA: Quote) for C$2.6 billion. [ID:nN3195307]
 ($1=$0.97 Canadian)
 (Additional reporting by Ka Yan Ng; editing by Rob Wilson)