November 19, 2013 / 9:53 PM / 7 years ago

CANADA STOCKS-TSX stumbles as investors hit pause button

* TSX falls 15.46 points, or 0.11 percent, to 13,442.60
    * Six of 10 main index sectors decline
    * Bombardier climbs after signing CSeries deal

    By John Tilak
    TORONTO, Nov 19 (Reuters) - Canada's main stock index fell
on Tuesday, with a decline in industrials offsetting stronger
resource shares, as investors worried about the U.S. Federal
Reserve's stimulus plans and feared a recent market rally might
have been overdone.
    The Toronto stock market's benchmark index, which is up
about 8 percent this year, eased from a two-year high it hit in
the previous session. 
    With market focus glued on U.S. Federal Reserve monetary
policy and China's plans for social and economic reform, some
investors have started to question whether the gains made by
global stock markets are sustainable.
    Billionaire Carl Icahn said on Monday he is "very cautious"
on the stock market, saying he could see a "big drop" because
earnings at many companies are fueled more by low borrowing
costs than by the strength of management. 
    Investors have been hungry for more details about the timing
of the Fed's rollback of its stimulus measures, and they will be
looking to an upcoming speech by Fed Chairman Ben Bernanke for
    "There's a little bit of a pause. The market may
consolidate," said Ben Jang, a portfolio manager at Nicola
Wealth Management.
    "A lot of people are waiting on the sidelines, to get a
little more color when Bernanke speaks tonight."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 15.46 points, or 0.11 percent, at
    Still, the benchmark Canadian index is up about 5 percent in
the quarter to date.
    "The Canadian market has run up quite a bit. You're looking
at a bit of a breather," Jang said. "As the bull market starts
to mature, people will start to look at earnings and revenue
growth to push it further."
    Six of the 10 main sectors on the index were in the red on
    The industrial sector shed 0.5 percent, with Canadian
National Railway Co losing 1.3 percent, to C$116.03,
and having the biggest negative influence on the market.
    But a gain in the price of U.S. crude oil helped push shares
of energy companies up 0.4 percent. Canadian Natural Resources
Ltd climbed 0.6 percent to C$33.84, and Encana Corp
 jumped 2.7 percent to C$20.05.
    Gold-mining stocks gained 0.6 percent, helped by a slight
increase in the price of bullion. Goldcorp Inc was up 0.4
percent at C$25.31, and Barrick Gold Corp rose 1.3
percent to C$18.67.
    In company news, Bombardier Inc said it signed a
letter of intent to sell five CSeries jetliners to Iraqi
Airways. Bombardier shares gained 0.7 percent to
0 : 0
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