July 27, 2010 / 3:23 PM / 9 years ago

CANADA STOCKS-TSX lower on resources, mixed data

* TSX down 13.09 points at 11,732.98

* Six of 10 sectors lower (Updates with details, commentary)

By Claire Sibonney

TORONTO, July 27 (Reuters) - Toronto’s main stock index was lower in choppy trading on Tuesday as optimism over fresh batch of solid corporate earnings was offset by mixed U.S. economic data and weakness in resource issues.

Weighing on the resource-heavy index, gold mining stocks slid 2.1 percent as growing investor confidence in the economic recovery dented the metal’s safe-haven appeal. [GOL/]

Barrick Gold Corp (ABX.TO) fell 2.4 percent to C$42.10, while Goldcorp Inc (G.TO) lost 2.4 percent to C$40.61.

Bruce Latimer, a trader at Dundee Securities, also pointed to a gold option expiry on Tuesday that will increase volatility in the sub-sector.

Technology stocks were 2 percent lower, led by Research In Motion RIM.TO, down 2.3 percent at C$55.87.

The United Arab Emirates said on the weekend that the BlackBerry poses security risks, raising fears of censorship and concerns that other Gulf countries might consider curbing the use of certain applications on the smartphone. [ID:nLDE66O07I]

As well, CGI Group Inc (GIBa.TO), Canada’s biggest technology outsourcing and consulting company, plunged 5.6 percent to C$15.33, despite reporting a 12 percent increase in third-quarter profit. [ID:nN23151635]

At 10:27 a.m. (1427 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 13.09 points, or 0.1 percent, at 11,732.98.

Six of the TSX’s 10 main sectors were lower, including powerhouse energy stocks, which fell after U.S. crude futures turned negative, pressured by a report showing U.S. consumer confidence fell in July. [O/R]

Among the big gainers, financial stocks rallied 1.1 percent after two of Europe’s top banks UBS UBSN.VX and Deutsche Bank (DBKGn.DE)(DB.N) posted results that reassured investors following last week’s regulatory stress tests.

Royal Bank of Canada (RY.TO) rose 1.2 percent to C$53.06, while Bank of Nova Scotia (BNS.TO) gained 1 percent to C$50.88.

“Global financials have been reporting some decent numbers over the last few days and the North American financials have had a good beat to them, and Canadians are following suit,” said Latimer.

U.S. earnings helped sustain investors’ optimism, with DuPont and Co DD.N nearly tripling its second-quarter profit. As well, U.S. single-family home prices rose more than expected in May according to the S&P/Case Shiller home price indexes, buoying hopes about the economic recovery.

On the domestic earnings front, Talisman Energy TLM.TO was up 1.2 percent to C$17.29 after reported second-quarter profit above estimates. [ID:nSGE66Q0GR]

Latimer also noted a rally in domestic uranium stocks on the back of solid commodity prices, sending Cameco Corp (CCO.TO) up 3.7 percent to C$26.71.

“This is a sector that was quite hot a few years ago, it may have gotten ahead of itself then but it’s coming back into favor now,” he said.

$1=$1.03 Canadian Reporting by Claire Sibonney; editing by Rob Wilson

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