August 13, 2012 / 9:08 PM / 7 years ago

CANADA STOCKS-TSX miners push index lower on weaker commodities

* TSX down 52.56 points, or 0.44 percent, at 11,838.33
    * Mining and energy stocks weigh as commodities fall
    * Weak Japan data also hurts

    By Alastair Sharp
    TORONTO, Aug 13 (Reuters) - Canada's main equity index fell
on Monday after weak Japanese data added to evidence of a
slowing global economy, with mining and energy stocks leading
the decline as commodity prices fell.
    Canada's market mirrored falls in European and U.S. markets
as concern over slowing growth offset hopes that major central
banks will move to stimulate growth.
    Miners and energy companies lead the Toronto index lower.
    "The pressure on Canada stems mostly from commodities being
weaker," said Levente Mady, a market strategist at Union
Securities in Vancouver.
    Copper fell for a fourth straight session and gold was also
lower as persistent concerns about the faltering health of the
global economy drove losses across the broader industrial
metals' complex.
    Copper, used in industrial construction, has been hit by
mounting fears of deteriorating economic outlooks in top metals
consumer China, the euro zone and the United States.
    Major Canadian copper producer Teck Resources Ltd 
was down 2.5 percent to C$29.58 and Barrick Gold Corp 
-- which gets one-fifth of its revenue from copper -- fell 1
percent to C$33.96. 
    Canada's resource-focused companies -- which make up a major
chunk of the overall index -- have been slow to recover from
dips in the price of commodities this year. 
    "(Gold miners) have been lagging for a long time. They're
quite a bit behind the commodity, said John Kinsey, a portfolio
manager at Caldwell Securities. "And the same with the energy
stocks, they're behind the oil price."
    Adding to macro-economic concerns, Japan's economy expanded
just 0.3 percent in April-June, half the pace expected, raising
doubts about the strength of the recovery as Europe's debt
crisis weighed on worldwide demand. 
    "People keep looking for signs we're into a recovery mode
and it's somewhat sustainable, however...I don't think there's
any consistency to what is going on in our economy and therefore
in our market," said Fred Ketchen, director of equity trading at
    A 2.6 percent fall in oil and gas company Canadian Natural
Resources Ltd to C$30.15 was the single biggest drag on
the index, while fertilizer maker Potash Corp also
weighed, down 1 percent to C$42.72.
    The Toronto Stock Exchange's S&P/TSX composite index
 unofficially closed down 52.56 points, or 0.44
percent, at 11,838.33.
    Insurers Manulife Financial Corp and Sunlife
Finacial Inc provided some support, gaining 2.3 percent
and 1.4 percent respectively.
    Pacific Rubiales Energy Corp gained 2.2 percent to
C$23.98 after it said it was making an additional investment in
a port project in Colombia.
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