June 5, 2014 / 11:34 AM / 5 years ago

TSX steady after ECB moves to cut rates

(Reuters) - Canada’s main stock index was little changed on Thursday as energy and bank shares declined after the European Central Bank moved to cut rates to record lows, offsetting a jump in the gold-mining sector.

A sign displaying TSX information is seen in Toronto November 20, 2008. REUTERS/Mark Blinch

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 to support a 1.5 percent rise in the shares of gold producers.

Overall, the Toronto market, which hit a near six-year high in the previous session, is up more than 8 percent this year.

“This market climbs walls of worry, as well as complacency,” said John Ing, president of Maison Placements Canada.

“We’ve not had a meaningful correction yet, and we’re due for that. “(Valuations) show that the market is expensive, and one should always be cautious as the market makes daily highs.”

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 3.39 points, or 0.02 percent, at 14,800.18. Six of the 10 main sectors on the index were higher.

Financials, the index’s most heavily weighted sector, gave back 0.2 percent. Royal Bank of Canada (RY.TO) lost 0.4 percent to C$74.57, and Bank of Nova Scotia (BNS.TO) declined 0.5 percent to C$70.18.

The shares of energy producers edged lower. Suncor Energy Inc (SU.TO) shed 0.3 percent to C$42.42, and Talisman Energy Inc TLM.TO was down 0.5 percent at C$11.11.

Among gold-mining shares, Goldcorp Inc G.TO rose 1.4 percent to C$25.46, and Barrick Gold Corp (ABX.TO) added 0.9 percent to C$17.56.

In corporate news, Canadian Western Bank (CWB.TO) reported a 19 percent rise in fiscal second-quarter net profit and raised its dividend. The stock fell 0.8 percent to C$38.04.

Reporting by John Tilak; Editing by Meredith Mazzilli

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