CANADA STOCKS-TSX slumps to 1-month low as golds dive

Fri Jun 7, 2013 5:21pm EDT
 
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* TSX falls 36.03 points, or 0.29 percent, at 12,373.30
    * Seven of 10 main sectors rise
    * Gold shares tumble 5 percent as bullion drops

    By John Tilak and Alastair Sharp
    TORONTO, June 7 (Reuters) - Canada's main stock index
slipped to a one-month low on Friday as a slump in gold miners,
which followed a tumbling bullion price, offset strength in
several other sectors after a robust U.S. jobs report.
    The market's decline, its sixth straight daily drop, sharply
contrasted with strong gains seen south of the border.
    U.S. employers stepped up hiring in May in a show of
economic resilience that analysts said suggests the Federal
Reserve could begin to scale back its monetary stimulus later
this year. 
    But fears that the Fed could turn off the monetary tap hit
gold prices and diminished the precious metal's appeal as a
safe-haven asset. 
    "The jobs numbers show evidence of a grinding recovery in
the United States, which is measurably positive, but not
robustly so," said Stephen Wood, chief market strategist, North
America, at Russell Investments.
    "The data suggests that there is no reason to think that the
Fed's going to deviate significantly from their current policy
position."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 36.03 points, or 0.29 percent, at
12,373.30, after earlier slipping to its lowest since May 2.
Seven of the 10 main sectors on the index were higher.
    The index lost 2.2 percent on the week.
    The Canadian market has been pulled down by the natural
resources sectors, which have been hit by volatile commodity
prices.
    "Within equities, we have a pretty large tilt toward U.S.
stocks and a pretty large tilt away from Canadian stocks," said
Geoff Stein, a portfolio manager with Fidelity Investments who
helps manage about $55 billion in assets. 
    Stein is cautious about Canadian equities due in part to the
weakness in the resource groups and the slowdown in the housing
industry.
    The benchmark Canadian index is in the red for the year,
while the U.S. S&P 500 has gained 15.2 percent.
    Gold stocks gave back 5 percent and dragged the materials
group down 3.4 percent.
    Goldcorp Inc slid 5.1 percent and Barrick Gold Corp
 declined 4.9 percent.
    Financials, the index's most heavily weighted sector, gained
0.3 percent. Manulife Financial Corp climbed 2.1
percent and had the biggest positive influence on the market.