November 11, 2010 / 9:48 PM / 8 years ago

CANADA STOCKS-TSX slips on European debt woes, Cisco outlook

   * TSX down 7.90 points, or 0.06 percent, at 12,934.74
 * Eight of 10 main groups end lower
 * Canadian Tire soars 6.8 pct as profit jumps  (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Nov 11 (Reuters) - Toronto’s main stock index slipped lower on Thursday as investor jitters about European debt woes and a glum outlook from tech heavyweight Cisco Systems sparked fresh worries about sluggish economic growth.
 The concerns about Europe hit influential names in the financial sector including Bank of Nova Scotia (BNS.TO), down 1 percent at C$53.85, and Royal Bank of Canada (RY.TO) also down 1 percent at C$53.70. Bank of Montreal (BMO.TO) fell 1.2 percent to C$58.52.
 “You’ve had the nagging problems of Ireland and debt problems,” said Irwin Michael, portfolio manager at ABC Funds.
 “People are not sure what to speculate on that, and there were concerns that might spread to Portugal and Spain, so in consequence the banks are under a little bit of pressure.”
 Uncertainty about the Group of 20 summit in Seoul was another factor keeping investors somewhat cautious, added Michael. [MKTS/GLOB] [FRX/]
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE finished the day down 7.90 points, or 0.06 percent, at 12,934.74, with eight of its 10 main sectors in the red.
 Energy and materials managed to notch gains, up 0.04 percent and 0.9 percent, respectively.
 The blue chip S&P/TSX 60 index .TSE60 closed 0.20 points lower, or 0.03 percent, at 741.86.
 Francis Campeau, a broker at MF Global Canada in Montreal, said that despite the soft market action on Thursday technicals are largely in tact.
 “To try to catch the top is always a tough venture. I think technicals are still quite healthy,” he said. Campeau said a selloff could be triggered if the market fell below the 50-day moving average of around 12,500.
 Broader market sentiment was also dampened after Cisco Systems Inc (CSCO.O) gave a dismal revenue outlook, stunning investors who had hoped for proof of a recovery in technology spending. The news helped to send U.S. stocks lower. [ID:nN10245398] [.N]
 “They’re pretty much a worldwide gauge of what’s going on in terms of the corporate sector. Their outlook is dampening (investor sentiment), no doubt about that. People are realizing slow means slow — slow growth for the economic cycle,” said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.
 On the upside, diversified miner Teck Resources TCKb.TO rose 4.1 percent to C$50.35 as copper touched record highs, stoked by strong economic data from top consumer China and persistent supply fears as inventories fell. [MET/L]
 Cameco Corp (CCO.TO) was up 3.2 percent at C$37.56, while First Quantum (FM.TO) rose 3.1 percent to C$93.80.
 Canadian Tire Corp (CTCa.TO), the top net gainer on the market, soared 6.8 percent to C$62.93 after the retailer reported a 21 percent jump in net earnings and hiked its dividend. [ID:nN11279801]
 Tim Hortons Inc THI.TO, Canada’s largest restaurant chain, reported a rise in quarterly profit on Thursday, but said it will close 36 restaurants in the United States in the fourth quarter to focus on its core growth markets. Its shares fell 0.8 percent to C$39.07. [ID:nN10224711]
 Labopharm Inc DDS.TO was down 4.9 percent at 98 Canadian cents after the drug maker posted a wider net loss as higher sales and marketing expenses offset improved revenue. [ID:nN11271364]
 ($1=$1.00 Canadian)                                        

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