CANADA STOCKS-TSX falls as sagging gold shares eclipse upbeat results

Wed Oct 24, 2012 5:29pm EDT

* TSX falls 30.82 points, or 0.25 percent, at 12,195.02
    * Canadian Pacific, Rogers, Teck Resources rise after
results
    * Gold stocks drag as bullion price falls
    * Late day Fed comments weigh


    By Solarina Ho
    TORONTO, Oct 24 (Reuters) - Toronto's main stock index
finished lower on Wednesday, its fourth straight loss, as gains
in Canadian Pacific Railway, Rogers Communications Inc
 and Teck Resources on positive quarterly results were
offset by weaker gold shares.
    Goldcorp tracked bullion prices, sliding 3.46 percent
to C$40.79. The precious metal fell to around $1,700 an ounce,
pressured by worries about a U.S. economic slowdown, but
recovered from near 7-week lows after the Federal Reserve stuck
to its plan to keep stimulating growth until the job market
improves.  
    The gold group has fallen 4.15 percent since Monday, while
bullion prices have shed about 1.5 percent during the same
period. The overall materials group, of which gold firms are a
part, was down 1.02 percent.
    Toronto Stock Exchange's S&P/TSX composite index 
finished down 30.82 points, or 0.25 percent, at 12,195.02 after
spending the day gyrating between positive and negative
territory. The index has fallen 2.17 percent since Friday, with
more than half the losses occurring in the previous session.
    Weak earnings outlook and revenue misses at large U.S.
companies kept market sentiment subdued, while no mention of an
improving labor market in a statement from the Federal Reserve
led stocks to retreat late in the day.
    Pat McHugh, Canadian equity strategist at Manulife Asset
Management said positive news from China and from corporate
earnings helped ease some of the negative tone in the market.
    CP Rail shares surged 6.02 percent to C$93.18 as the
railway's profit jumped 20 percent, while Rogers climbed 3.29
percent to C$42.43 after the mobile phone company reported a
higher percentage of smartphone subscribers. 
 
    Canada's largest diversified miner, Teck Resources, climbed
2.78 percent to C$31.39, as its earnings per share were not far
off analysts' expectations despite a sharp fall in profit.
 
    "There are good aspects from all those three companies in
there. That probably helped set the tone for a bit of a recovery
day," said McHugh, but added, "No one is popping champagne."
    The companies played the biggest role of any three stocks in
supporting the market. The industrials sector, which includes CP
Rail, was up 1.36 percent, providing the most support for the
broader market. The telecoms group, home to Rogers, rose 0.92
percent.
    News that a survey showed China's economy was making a slow,
steady recovery from its weakest period of growth in three years
was also supportive. 
    In other company news, Encana Corp, Canada's
largest gas producer, posted a third-quarter loss as it recorded
a $1.19 billion after-tax impairment charge due to a fall in
natural gas prices. 
     Encana shares fell 3.1 percent to C$21.86. The overall
energy group ease 0.5 percent, as oil prices eased on rising
U.S. crude inventories and weak euro zone data.
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