CANADA STOCKS-TSX slumps to 13-day low as Potash, resources weigh

Thu Jan 31, 2013 11:33am EST

* TSX falls 91.78 points, or 0.72 percent, at 12,702.66
    * All 10 major sectors decline
    * Potash slips 2 percent on results

    By John Tilak
    TORONTO, Jan 31 (Reuters) - Canada's main stock index hit a
two-week low on Thursday, weighed down by Potash Corp 
after weak fourth-quarter results and by other resource stocks,
which slipped along with commodity prices as investors worried
about global growth.
    Potash, the world's biggest fertilizer company, reported a
surprisingly large drop in fourth-quarter profit and gave a
first-quarter outlook below Wall Street's forecast. The stock
declined 2 percent.
    Research In Motion Ltd shares dived yet again,
falling 8.3 percent to C$12.71, the day after the BlackBerry
maker released a new line of phones, as its release dates
    Investors also tried to digest data from Europe, which
included a drop in German retail sales, stagnant French consumer
spending and a huge quarterly loss at Deutsche Bank. But a
measure of business activity in the U.S. Midwest rose in January
to its strongest since April. 
    Oil prices dipped below $115 a barrel and gold prices fell
nearly 1 percent, weighing on the resource-heavy Toronto index.
    "The nature of resources is they respond to commodity prices
both current and anticipated. They tend to be more volatile
reflecting that," said Bob Gorman, chief portfolio strategist at
TD Waterhouse.
    Gorman said he wouldn't be surprised to see the market pull
back after the strong run it's had over the past several weeks.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 91.78 points, or 0.72 percent, at 12,702.66.
The index fell to 12,701.92, its lowest since Jan. 18.
    All 10 major sectors on the index were in the red.
    The materials sector, which includes mining stocks, gave
back 1.1 percent. Goldcorp Inc was down 1.5 percent at
    The energy sector dropped 0.6 percent, with Canadian Natural
Resources Ltd falling 2.4 percent to C$30.43 and
playing one of the biggest roles in leading the market lower.
    Financials, the index's weightiest sector, were down 0.6
percent. Royal Bank of Canada fell 0.5 percent to
C$62.29, and Bank of Nova Scotia lost 0.8 percent to
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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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