CANADA STOCKS-Energy stocks, Bombardier drag TSX to 5-week low

Thu Feb 21, 2013 10:48am EST

* TSX down 97.52 points, or 0.77 percent, at 12,616.53
    * Nine of 10 main sectors decline
    * Bombardier shares lose 6 percent after results

    By John Tilak
    TORONTO, Feb 21 (Reuters) - Canada's main stock index
stumbled to a five-week low on Thursday, led by energy and
financial stocks, as a bigger-than-expected rise in U.S. weekly
jobless claims and surprisingly weak euro zone economic data
weighed on the market.
    Bombardier Inc was also a major drag on the
market. Its shares fell about 6 percent after the plane maker
reported a sharp drop in quarterly profit. 
    Concerns that the U.S. Federal Reserve might end its
stimulus program sooner than expected further added to the
gloom. 
    "People are a little nervous. There is a bit of pessimism,"
said Irwin Michael, portfolio manager at ABC Funds. "The market
has had a nice run. We think it's maybe a correction," he added.
    Strategists have said the Canadian stock market could be set
for a near-term pullback after a rally that took it to 18-month
highs, with resource shares especially vulnerable. 
 
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 97.52 points, or 0.77 percent, at 12,616.53,
after reaching 12,602.54, its lowest point since Jan. 16.
    Nine of the 10 main sectors on the index were in the red.
    Energy shares slipped 1.8 percent, with oil prices falling
to a three-week low on the macroeconomic concerns. 
    Suncor Energy Inc, Canada's largest energy company,
fell 2.1 percent to C$31.34, and Canadian Natural Resources Ltd
 lost 2.1 percent to C$29.93.
    Financials, the index's weightiest sector, were down 0.9
percent.
    Royal Bank of Canada gave back 1 percent to C$63.82
and played a major role in pulling the market lower.
    Bombardier shares slumped to C$4.02 and were a drag on the
industrials group, which slipped 1.4 percent.
    The materials sector, which includes mining stocks, gained
0.4 percent after gold and silver prices rebounded slightly
after being hammered on Wednesday because of the Fed stimulus
comments.
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A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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