November 26, 2013 / 4:22 PM / 7 years ago

CANADA STOCKS-TSX drops as gold miners lead broad selloff

* TSX falls 42.65 points, or 0.32 percent, to 13,429.56
    * All of the 10 main index sectors decline
    * Gold miners drop 1.8 percent
    * Couche-Tard jumps after reporting results

    By John Tilak
    TORONTO, Nov 26 (Reuters) - Canada's main stock index fell
for a second straight session on Tuesday, with every major
sector trading in the red as the market reacted to political
tension in the East China Sea and as weaker bullion prices hit
gold-mining shares.
    Uncertainty about the future of the U.S. Federal Reserve's
monetary stimulus plans and sluggish physical demand were a drag
on the price of gold. 
    Data that showed that permits for U.S. home construction hit
a near 5-1/2 year high in October and that prices for
single-family homes in the United States soared in September
failed to inject much enthusiasm into the market.
    Investors, however, paid attention to comments from the
White House that China's requirement that airlines inform
Beijing when they are entering airspace over disputed islands in
the East China Sea is "unnecessarily inflammatory".
    "The market is in a wait-and-see mode," said Shailesh
Kshatriya, associate director for client investment strategies
at Russell Investments Canada.
    Investors want more clarity from economic data and central
bank moves before becoming more bullish on the Canadian market,
he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 42.65 points, or 0.32 percent, at 13,429.56.
    "We are mildly positive on North American equities for next
year," Kshatriya said.
    "We'd like to see some of the volatility (in commodity
prices) subside," he said. "That will definitely get us to be
more constructive towards the Canadian equity market."
    All of the 10 main sectors on the index were in the red on
    Shares of financial companies fell 0.2 percent, with Bank of
Nova Scotia dropping 0.5 percent to C$66.15 and
Toronto-Dominion Bank slipping 0.3 percent to C$97.60.
    Gold producers gave back 1.8 percent. Goldcorp Inc 
shed almost 2 percent to C$23.73, and Barrick Gold Corp 
lost 1 percent to C$17.11. The index's gold-mining sector has
lost close to half its value this year.
    In company news, Rogers Communications Inc said it
signed a landmark C$5.2 billion ($4.9 billion) deal to broadcast
National Hockey League games in Canada for the next 12 years.
The stock, down 0.9 percent at C$46.34, fell with the broader
    Alimentation Couche-Tard jumped 1.6 percent to
C$75.13 after the convenience store chain reported a 27 percent
rise in quarterly profit, driven by higher gasoline margins and
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