February 10, 2011 / 3:35 PM / 8 years ago

CANADA STOCKS-TSX undercut by profit misses, Encana soars

* TSX falls 0.34 percent to 13,737.95

* Manulife, Thomson Reuters, and BCE drop on results

* Encana rises nearly 6 pct on PetroChina deal (Adds details)

By Ka Yan Ng

TORONTO, Feb 10 (Reuters) - Toronto’s main stock index was lower on Thursday morning, pressured by earnings misses from Canadian and international companies.

Disappointing earnings from global names Cisco and Credit Suisse weighed on overall sentiment, although stronger-than-expected weekly U.S. jobs figures helped to temper the decline.

At home, investors pushed down shares of Manulife Financial (MFC.TO), Thomson Reuters (TRI.TO), and BCE Inc (BCE.TO) after the blue-chip companies’ results missed expectations.

At 10:10 a.m. (1510 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 46.35 points, or 0.34 percent, at 13,737.95. Earlier it hit a one-week low of 13,692.79. Seven index sectors declined.

“Overall the earnings coming out today are tending to slightly disappoint on balance,” said Michael Sprung, president at Sprung & Co Investment Counsel.

Manulife Financial Corp led heavyweight decliners, falling 4.2 percent to C$18.13, after it said its quarterly profit doubled but it fell short of analysts estimates. [ID:nN08136113]

BCE Inc just missed earnings expectations despite a 25 percent jump in fourth-quarter profit, but its shares slipped about 1 percent to C$36.22. [ID:nN10262604]

Thomson Reuters Corp slid 2.6 percent to C$39.99 after fourth-quarter adjusted earnings per share missed the average analyst forecast. The news and information provider forecast higher revenue this year. [ID:nN09100522]

Encana (ECA.TO) topped heavyweight gainers, rising nearly 6 percent to C$32.44, and kept the energy group well supported.

Investors cheered its agreement to sell to PetroChina half of a prolific British Columbia shale gas project for C$5.4 billion in the largest Chinese investment in a Canadian energy asset yet. The market shrugged off the 82 percent drop in operating profit that Encana reported on Thursday. [ID:nN09296031] [ID:nSGE71908F]

“Encana results were a little bit disappointing but they were largely overshadowed by the deal with China. From my point of view, they’re getting a very, very good price for those assets, and so I think it will be a net positive for the firm in the long run,” Sprung said.

$1=$1.00 Canadian Reporting by Ka Yan Ng; editing by Peter Galloway

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below