CANADA STOCKS-TSX falls as gold miners dive after Fed comments

Wed Oct 29, 2014 5:19pm EDT
 
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* TSX down 96.68 points, or 0.66 percent, at 14,527.57
    * Eight of 10 main index sectors decline
    * Horizon North plunges after results, outlook

 (Adds strategist comment, details, updates prices to close)
    By John Tilak and Alastair Sharp
    TORONTO, Oct 29 (Reuters) - Canada's main stock index
dropped on Wednesday as gold-mining shares fell with bullion
prices after the U.S. Federal Reserve offered an upbeat outlook
for jobs and ended its stimulative bond-buying program.
    The U.S. central bank closed its monthly asset purchase
program and dropped a characterization of U.S. labor market
slack as "significant" in a show of confidence in the economy's
prospects. 
    Bullion, which tends to lose its allure as a safe-haven
asset when there are bullish economic signals, dived 1.5
percent. Shares of gold miners dropped 4.4 percent. 
    Investors also digested earnings reports from miners Cameco
Corp and Teck Resources Ltd. Cameco shares
dropped 3.3 percent to C$18.92 after the uranium producer said
it expected full-year revenue to fall by up to 5 percent due to
labor problems at mines. 
    "Some companies have disappointed, some have managed to
hurdle over a pretty low bar as far as earnings expectations
(go)," said Elvis Picardo, a strategist at Global Securities in
Vancouver.
    "On the plus side, Teck, which has really been beaten down
in the last few weeks, came out with pretty solid numbers all
things considered," Picardo said.
    Teck rose 1.8 percent to C$18.16 after the miner reported
adjusted third-quarter earnings that topped market expectations.
 
   The Toronto Stock Exchange's S&P/TSX composite index
 closed down 96.68 points, or 0.66 percent, at
14,527.57. 
     The benchmark index has been hit over the past month by
worries about Fed policy, choppy oil prices and sluggish global
economic growth. It is down nearly 3 percent so far this month.
    Eight of the 10 main sectors on the index were in the red on
Wednesday.
    Among gold miners, Barrick Gold Corp shed 5 percent
to C$14.34, and Goldcorp Inc was down 4.2 percent at
C$24.04.
    Financials, the index's most heavily weighted sector,
slipped 0.4 percent. Royal Bank of Canada gave back 0.4
percent to $79.13, and Toronto-Dominion Bank declined
0.7 percent to C$54.37.
    Horizon North Logistics Inc plunged 28 percent to
C$3.32, after the company reported quarterly results and gave an
outlook late on Tuesday. 
    ($1=$1.12 Canadian)

 (Editing by W Simon; and Peter Galloway)