TSX falls as sagging gold shares eclipse upbeat results

Wed Oct 24, 2012 5:31pm EDT
 
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By Solarina Ho

TORONTO (Reuters) - Toronto's main stock index finished lower on Wednesday, its fourth straight loss, as gains in Canadian Pacific Railway CP.TO, Rogers Communications Inc RCIb.TO and Teck Resources on positive quarterly results were offset by weaker gold shares.

Goldcorp G.TO tracked bullion prices, sliding 3.46 percent to C$40.79. The precious metal fell to around $1,700 an ounce, pressured by worries about a U.S. economic slowdown, but recovered from near 7-week lows after the Federal Reserve stuck to its plan to keep stimulating growth until the job market improves.

The gold group has fallen 4.15 percent since Monday, while bullion prices have shed about 1.5 percent during the same period. The overall materials group, of which gold firms are a part, was down 1.02 percent.

Toronto Stock Exchange's S&P/TSX composite index .GSPTSE finished down 30.82 points, or 0.25 percent, at 12,195.02 after spending the day gyrating between positive and negative territory. The index has fallen 2.17 percent since Friday, with more than half the losses occurring in the previous session.

Weak earnings outlook and revenue misses at large U.S. companies kept market sentiment subdued, while no mention of an improving labor market in a statement from the Federal Reserve led stocks to retreat late in the day.

Pat McHugh, Canadian equity strategist at Manulife Asset Management said positive news from China and from corporate earnings helped ease some of the negative tone in the market.

CP Rail shares surged 6.02 percent to C$93.18 as the railway's profit jumped 20 percent, while Rogers climbed 3.29 percent to C$42.43 after the mobile phone company reported a higher percentage of smartphone subscribers.

Canada's largest diversified miner, Teck Resources, climbed 2.78 percent to C$31.39, as its earnings per share were not far off analysts' expectations despite a sharp fall in profit.   Continued...

 
A general view of the TSX (Toronto Stock Exchange) Broadcast Centre in Toronto June 20, 2008. REUTERS/Mark Blinch