CANADA STOCKS-TSX declines after ECB cuts interest rates

Thu Jun 5, 2014 11:06am EDT
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* TSX down 24.40 points, or 0.16 percent, at 14,772.39
    * Six of 10 main index sectors decline
    * Canadian Western Bank falls after reporting results

    By John Tilak
    TORONTO, June 5 (Reuters) - Canada's main stock index
slipped on Thursday as shares of energy and bank shares weakened
after the European Central Bank moved to cut rates.
    The ECB set in motion a range of measures targeted at
tackling low inflation as it cut rates, imposed negative
interest rates on its overnight depositors and offered banks new
long-term funds. 
    The price of bullion jumped after the announcement, helping
support a 1 percent rise in shares of gold producers.
    Overall the Toronto market eased after advancing in each of
the four previous sessions and hitting a near six-year high on
    "Maybe there is a pause here. It is more of a consolidation
of the strong move that we've had," said Sid Mokhtari, market
technician and director, institutional equity research, CIBC
World Markets.
    He said that there was no negative market trend developing
and added that he was seeing strong fund flows into the energy
sector, including foreign funds.
    "Blue-chip stocks are also strongly outperforming
smaller-cap names," he said.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 24.40 points, or 0.16 percent, at 14,772.39.
Six of the 10 main sectors on the index were in the red.
    Financials, the index's most heavily weighted sector, gave
back 0.4 percent. Royal Bank of Canada lost 0.6 percent
to C$74.46, and Bank of Nova Scotia declined 0.6
percent to C$70.08.
    Shares of energy producers followed the price of oil lower.
Suncor Energy Inc shed 0.9 percent to C$42.15, and
Canadian Natural Resources Ltd was down 0.7 percent at
    Among gold-mining shares, Goldcorp Inc climbed 1
percent to C$25.37, and Barrick Gold Corp added 0.9
percent to C$17.55.
    In corporate news, Canadian Western Bank reported
the 19 percent rise in fiscal second-quarter net profit and
raised its dividend. The stock fell 0.7 percent to C$38.10.

 (Editing by W Simon)