July 6, 2017 / 2:54 PM / 2 months ago

CANADA STOCKS-TSX falls as Tahoe plunges on mine suspension; Air Canada jumps

(Adds details on specific stocks, updates prices)

* TSX down 74.75 points, or 0.49 percent, at 15,078.37

* Nine of the TSX’s 10 main groups move lower

TORONTO, July 6 (Reuters) - Canada’s main stock index fell on Thursday, with Tahoe Resources Inc plunging after its license to operate in Guatemala was suspended, while Air Canada bounced after it said a key earnings metric would exceed analysts’ expectations.

Tahoe’s Canada-listed shares fell 28.4 percent to C$7.70 as the company said the suspension of operations at its Escobal silver mine meant it could no longer confirm its previously issued 2017 outlook. Several banks cut their target prices and recommendations on the stock.

Air Canada rose 7.8 percent to C$18.70 after the airline said it expected its earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent to “significantly exceed” analysts’ expectations.

Smaller rival Westjet Airlines Ltd added 2.4 percent to C$24.10.

At 10:30 a.m. ET (1430 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 74.75 points, or 0.49 percent, at 15,078.37.

Nine of its 10 main sectors were lower, with telecoms notching a slight gain. Decliners outnumbered advancers by almost 3-to-1 overall.

Alternative lender Equitable Group Inc fell 1 percent to C$58.58 after the country’s main financial regulator said it planned to ban some bundled residential mortgages to clamp down on risky lending, six months after a Reuters investigation revealed that regulated mortgage providers were teaming up with unregulated rivals to circumvent rules limiting how much they can lend against a property.

Intact Financial Corp lost 1.6 percent to C$96.60. The property and casualty insurer issued estimates of its catastrophe loss payouts due to severe storms and flooding in Ontario and Quebec that were higher than a National Bank Financial analyst had expected.

The materials group, which includes precious and base metal miners and fertilizer companies, lost 1.2 percent. Barrick Gold Corp fell 2.2 percent to C$20.22, as gold steadied the day after it hit a two-month low.

Energy stocks were off 0.2 percent overall.

Oil rose on Thursday, recovering some ground after a surprisingly upbeat picture of U.S. demand halted the previous day’s slide, although the prospect of oversupply in 2018 prompted yet more analysts to cut their price forecasts.

Canada’s trade deficit almost doubled to C$1.09 billion ($845 million) in May, but in a sign of economic strength, both exports and imports reached record highs, Statistics Canada data indicated on Thursday. (Reporting by Alastair Sharp; Editing by Lisa Von Ahn)

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