CANADA STOCKS-Macro worries resurface as TSX slips with energy, metals

Wed Jan 16, 2013 3:19pm EST

* TSX falls 40.11 points, or 0.32 percent, to 12,601.86
    * Seven of 10 main sectors decline
    * RIM shares rise 3.5 percent; company encouraged by BB10
program

    By John Tilak
    TORONTO, Jan 16 (Reuters) - Canada's main stock index
slipped on Wednesday, led by energy and material shares, as
gloomy economic commentary from the World Bank and weak
industrial data out of Europe renewed investor concerns about
global growth.
    Investors shifted their focus, if briefly, from corporate
earnings to macroeconomic concerns after the World Bank said a
slow economic recovery in developed nations was holding back the
global economy as it sharply cut its outlook for world growth in
2013. 
    Meanwhile, demand for new cars in recession-bound Europe
fell to a 17-year low in 2012, highlighting the crisis for
automakers on the continent. 
    "The economic risk and the political risk are still out
there. (But) we're really relying on company fundamentals," said
Michael Newton, associate director and portfolio manager at
Macquarie Private Wealth Inc.
    Several of Canada's major companies, including Canadian
National Railway Co, will be reporting quarterly
earnings next week.
    Investors are looking for strong evidence of earnings and
sales strength as the fourth-quarter reports come rolling in,
not more blame being placed on macro conditions, Newton said.
    "It's going to be a really important quarter. This is your
third visit to the doctor," he added.
    The index eased from a 10-1/2 month high hit on Tuesday,
when the materials sector outperformed the market. The group on
Wednesday played a major role in leading the market lower.
    "The market has been on a nice tear. We need to get
confirmation from CEOs and earnings that we have turned the
corner," said Barry Schwartz, vice president and portfolio
manager at Baskin Financial Services.
    At midafternoon, the Toronto Stock Exchange's S&P/TSX
composite index was down 40.11 points, or 0.32
percent, at 12,601.86.
    Seven of the 10 main sectors on the index were in the red.
However, the information technology sector was up 0.6 percent
because of a 3.5 percent jump in BlackBerry maker Research In
Motion Ltd to C$14.77.
    The company said it was extremely encouraged by the response
to a program of incentives aimed at persuading its biggest
clients to run its soon-to-launch line of BlackBerry 10 devices.
 
    Magna International Inc gained 0.9 percent to
C$51.65 after the auto parts manufacturer said it expects sales
to edge higher this year, citing strong growth in fast-growing
markets such as China and Brazil. 
    The materials sector, which includes mining stocks, slipped
0.7 percent. Fertilizer giant Potash Corp lost 0.8
percent to C$41.26, and miner Barrick Gold Corp fell
0.9 percent to C$33.72.
    The financial sector, the index's largest, gave back 0.3
percent, and energy stocks dropped 0.6 percent despite a rise in
oil prices.
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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