October 27, 2009 / 9:19 PM / in 8 years

CANADA STOCKS-Banks drag on TSX, telecoms lone bright spot

 * TSX finishes down 1.61 percent at 11,053.54
 * Banks headline selloff, fall for third straight session
 * Kinross drops on lower output forecast
 * Rogers rises as BlackBerry, iPhone boost profit
 (Adds details)
 By Ka Yan Ng
 TORONTO, Oct 27 (Reuters) - Toronto's main stock index fell
sharply on Tuesday, weighed down by shares of banks and
insurers, which dropped for a third straight session, and by
miner Kinross Gold K.TO, which cut its production forecast.
 Banking and insurance shares were the heaviest drag on the
index, with all five big banks among the top decliners.
 The fall was led by Royal Bank of Canada RY.TO, which
declined 3.5 percent to C$53.70, followed by Toronto-Dominion
Bank TD.TO, down 3.6 percent at C$62.17.
 Kinross shares ended down 6.24 percent at C$20.30 after the
company lowered its full-year 2009 production outlook and
raised its estimate for average cost of sales. [ID:nN27230566]
 Other gold miners joined the selloff, partly because of a
bounce higher for the U.S. dollar, which tends to draw
attention away from alternative investments such as gold.
Goldcorp G.TO shares were off 2 percent at C$40.12, and
Eldorado Gold ELD.TO fell 2.9 percent to C$11.84.
 The energy group was unable to hold on to gains even as the
price of oil edged above $79 a barrel. Suncor SU.TO fell 1.6
percent to C$37.01.
 "Energy, materials, financials ... are still good areas,
it's just they went up a bit too quickly," said Ian Nakamoto,
director of research at MacDougall, MacDougall & MacTier.
"We'll eventually come back but we need a bit of a respite."
 The S&P/TSX composite index .GSPTSE finished down 181.34
points, or 1.61 percent, at 11,053.54.
 Rogers Communications Inc RCIb.TO was one bright spot on
the index, rising 5.4 percent to C$30.46 after it reported
higher-than-expected quarterly results as subscribers snapped
up smartphones like Research In Motion's RIM.TORIMM.O
BlackBerry and Apple's AAPL.O iPhone despite the recession.
 Rogers' results helped push up the index's telecoms group,
the only one of the index's 10 main groups to advance. Rival
wireless carrier Telus T.TO rose 0.6 percent to C$33.05, and
BCE BCE.TO was up 1.1 percent at C$25.60.
 Investors are getting into the thick of earnings season in
Canada, and the results have been mixed so far. On Tuesday,
power company TransAlta TA.TO reported a rise in profit but
forecast lower-than-expected annual cash flow. [ID:nN26140816]
 TransAlta slipped 0.4 percent to C$20.97.
 Canadian Pacific Railway CP.TO reported a smaller than
expected 29 percent drop in quarterly operating earnings, but
its stock fell 5 percent to C$46.32 along with other North
American railroads on bleak U.S. consumer confidence data.
 The U.S. consumer confidence report for October also
weighed on market sentiment. Without sufficient consumer
spending, which accounts for 70 percent of the U.S. economy,
the already fragile recovery could weaken. The Conference
Board's U.S. consumer confidence index fell to its lowest level
since July and was well below forecasts. [ID:nN27236301]
 ($1=$1.07 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