May 12, 2011 / 8:47 PM / in 7 years

CANADA STOCKS-Resources drag TSX lower in volatile session

   * TSX ends down 30.32 points, or 0.23 pct, at 13,389.42
 * Eight of the index's 10 main groups lower
 (Recasts, updates with closing numbers)
 By Solarina Ho
 TORONTO, May 12 (Reuters) - Toronto's main stock index
closed lower on Thursday after a volatile session, as battered
commodity prices pared losses but continued to weigh on
resource shares.
 The index swung widely from a steep early drop on fears of
slower economic growth and lower commodity demand, into
positive territory and back into the red, tracking volatile
moves in commodity prices.
 The energy and materials groups -- which together make up
about 50 percent of the index's weight -- were down 0.15
percent and 0.82 percent respectively.
 Suncor Energy SU.TO was off 1.09 percent at C$38.88,
while Agnico Eagle AEM.TO was down 1.65 percent at C$59.44.
Barrick Gold ABX.TO eased 0.87 percent to C$43.44. Uranium
miner Cameco Corp CCO.TO slid 4.87 percent to C$25.37.
 Crude prices rebounded as a weakening U.S. dollar offset
demand worries. The weaker greenback -- which fell against the
euro on expectations of European rate hikes -- also helped
gold, silver and copper pare big losses. [O/R] [GOL/] [MET/L]
 "It totally reflects the overall feeling of uncertainty in
the market. It's one of those times where investors are really
not sure if the glass is half empty or half full. That's why
we're seeing this sort of action," said Elvis Picardo, an
analyst and strategist at Global Securities.
 "We have broken through the support level at 13,500. And of
course the downside action is a familiar one."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 30.32 points, or 0.23 percent, at
13,389.42. The index, which has retreated in seven of the past
nine sessions, fell more than 1 percent on Thursday morning
before rebounding. Eight of the index's 10 sectors were lower.
 "We're getting to the stage where it's overdone. The trade
is all one way: everybody's pessimistic, everybody's negative,
everyone's throwing in the towel," said Rick Hutcheon,
president and chief operating officer of RKH Investments.
 "I think we're in the final throes of a short-term
correction. I think the end is near, probably by the middle of
next week, we'll be heading back up again ... I think we've
paid for it."
 Picardo noted that the factors plaguing market sentiment
were nothing new and have been weighing on the market for a
long time: concerns over China, euro zone debt and the economic
 "When you have something like that, sentiment can really
turn on a dime," he said. "So investors have to be prepared for
this sort of volatility."
 Corporate earnings on Thursday were mixed. BCE Inc
BCE.TO, which reported a 16 percent rise in operating profit,
was up 2.57 percent at C$37.89, making it the lead blue-chip
gainer. [ID:nN10106124] The overall telecoms group was ahead
0.8 percent.
 Canadian Tire CTC.TO CTCa.TO rose 2.1 percent to
C$62.60 after it reported a higher profit, helped by retail
sales growth. [ID:nN12279700]
 Tim Hortons THI.TO, which posted a higher profit but
missed market estimates, was among the big losers, sagging 4.07
percent to C$45.92. [ID:nN12290169]
 ($1=$0.97 Canadian)
 (Editing by Rob Wilson)

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