CANADA STOCKS-TSX slips as energy gains offset by CN Rail

Tue Jul 23, 2013 11:11am EDT
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* TSX falls 19.05 points, or 0.16 percent, to 12,738.44
    * Six of 10 main sectors decline
    * CN Rail drops 1.4 percent after results
    * Gold miners slip with bullion price

    By John Tilak
    TORONTO, July 23 (Reuters) - Canada's main stock index
slipped on Tuesday after gains in energy producers and positive
sentiment following China's commitment to economic reform were
offset by a drop in Canadian National Railway's stock
after the company's quarterly results.
    CN Railway shares fell 1.4 percent after the country's
largest railroad posted an 11 percent rise in second-quarter
adjusted profit and said its oil shipments grew. 
    The decline came after the stock had a bit of a run-up in
price before Monday's earnings report, 
    The Toronto market hit a seven-week high earlier in the
session before giving up four straight sessions of gains.
    Investors paid attention to Chinese Vice Premier Zhang
Gaoli, who said the country, a major consumer of Canada's
commodity exports, remains committed to steering its economy
towards consumption as the main growth driver, and away from
investment and exports, and will fine-tune policies to deal with
any prolonged slowdown. 
    Shares of energy producers climbed after the price of Brent
crude rose. 
    "Energy stocks are the feature today. There's a positive
mood for the group," said John Ing, president of Maison
Placements Canada.
    "But inventories are building, and that means the short-term
price increase that we've seen will likely be temporary," he
added. "Demand is still not catching up, and that will put the
pressure on prices."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 19.05 points, or 0.16 percent, at 12,738.44. 
    Six of the 10 main sectors on the index were trading lower.
    The materials sector, which includes mining stocks, slipped
0.3 percent, hurt by declines in shares of gold miners.
    Goldcorp Inc fell 0.9 percent to C$29.71.
    Financials, the index's most heavily weighted sector, lost
0.1 percent. Royal Bank of Canada, the country's biggest
lender, was down 0.2 percent at C$64.92.
    CN Rail shares fell to C$103.31 and played the biggest role
of any single stock in leading the market lower. Rival Canadian
Pacific Railway Ltd gave back 0.5 percent to C$131.95.
Those moves took the industrials sector down 0.4 percent.
    But energy shares were up 0.4 percent. Encana Corp 
rose 1 percent to C$18.21, and Suncor Energy Inc gained
0.7 percent to C$33.32.