CANADA STOCKS-Golds pull TSX to near 1-month low; Cyprus eyed

Tue Mar 26, 2013 11:11am EDT

Related Topics

* TSX falls 16.96 points, or 0.13 percent, to 12,663.75
    * Six of 10 main index sectors decline
    * TransAlta shares fall after declaring force majeure

    By John Tilak
    TORONTO, March 26 (Reuters) - Canada's main stock index fell
to its lowest level in almost a month on Tuesday, led by
weakness in gold producers, as an easing of worries over Cyprus
lessened the appeal of gold as a safe haven and weighed on
bullion prices.
    The market, however, received support from data that showed
demand for long-lasting U.S. manufactured goods surged in
February, suggesting factory activity continued to expand at a
moderate pace. 
    Investors tracked unfolding developments in Cyprus, where
banks will remain closed until Thursday and will be subject to
capital controls to prevent a run on deposits. 
    "Cyprus is still on people's minds. We're going back and
forth on that," said Ian Nakamoto, director of research at
MacDougall, MacDougall & MacTier.
    "Is it going to set a precedent for other countries that get
into trouble?" 
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 16.96 points, or 0.13 percent, at 12,663.75,
after falling as far as 12,658.34, its lowest point since
February 27.
    Six of the 10 main sectors on the index were in the red. 
    The materials sector, which includes mining stocks, fell 0.8
percent, with gold-mining shares down more than 1 percent.
Bullion prices fell on lower demand after Cyprus secured its
last-minute bailout deal.
    Barrick Gold Corp gave back 1.3 percent to C$29.25,
and Goldcorp Inc slipped 0.7 percent to C$33.44.
    Energy shares lost 0.2 percent.
    TransAlta Corp declared force majeure at its
395-megawatt Keephills 1 power plant in Alberta due to a winding
failure in the generator. Shares of the power generation company
were down 0.8 percent at C$14.70.
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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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