CANADA STOCKS-TSX dips as CN Rail, financials offset rise in miners

Tue Jul 23, 2013 5:15pm EDT
 
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* TSX falls 13 points, or 0.10 percent, to 12,745.38
    * Five of 10 main sectors decline
    * CN Rail drops 3.2 percent after results
    * Miners gain as commodity prices climb

    By John Tilak
    TORONTO, July 23 (Reuters) - Canada's main stock index
pulled back on Tuesday after a four-day rally as a decline in
shares of Canadian National Railway Co following its
results offset strength in mining shares.
    Shares of CN Railway, the country's largest railroad, fell
3.2 percent after the company posted an 11 percent rise in
second-quarter adjusted profit but said the second half might be
challenging. The stock was the single biggest factor leading the
market lower. It had run up before earnings were released after
the market close on Monday. 
    Rival Canadian Pacific Railway Ltd gave back 1.8
percent to C$130.18. The decline of the two rail companies took
the industrials sector down 1.1 percent.
    The Toronto market hit a seven-week high earlier in the
session before giving up gains.
    The materials sector was the biggest positive influence,
rising 1.5 percent as shares of gold and base metal miners rose.
    "From a valuation perspective and also from a sentiment
perspective, things are turning around" for metals and mining
companies, said Marcus Xu, president and portfolio manager at MY
Capital Management Corp.
    "The commodities side of the market is always going to be
volatile, but I think a long-term trend is starting," he added.
"As the market starts to get more comfortable, you'll see more
money gravitate to risky sectors and names."
    Gold hit a one-month high as speculators bought back bearish
bets ahead of an option expiry later this week. 
    First Quantum Minerals Ltd jumped 6.6 percent to
C$17.37 and was the biggest supporting influence of any one
stock. Goldcorp Inc rose 2.4 percent to C$30.69.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 13 points, or 0.10 percent, at 12,745.38. 
    Five of the 10 main sectors on the index were in the red.
    Financials, the index's most heavily weighted sector, lost
0.4 percent. Bank of Nova Scotia gave back 1 percent to
C$58.35.