CANADA STOCKS-Golds, banks pull TSX lower on weak data, Cyprus; RIM gains

Thu Mar 28, 2013 11:28am EDT

* TSX falls 32.06 points, or 0.25 percent, to 12,667.59
    * Six of 10 main sectors advance
    * BlackBerry shares rise 2 percent after results

    By John Tilak
    TORONTO, March 28 (Reuters) - Canada's main stock index fell
on Thursday, led by declines in gold shares that followed the
bullion price lower and in financial stocks, as weak U.S.
economic data and worries about spillover effects of the Cyprus
crisis deepened investor gloom.
    A rise in BlackBerry after the smartphone maker
reported a surprise quarterly profit offset some of the losses.
In 
    Cypriots queued calmly at banks as they reopened on Thursday
under tight controls imposed on transactions to prevent a run on
deposits after the government was forced to accept a stringent
EU rescue package to avert bankruptcy. 
    The banking crisis in Cyprus has weighed on investors for
about a week, and some worry that it is an indication of
shortcomings in the broader euro zone. 
    "Cyprus continues to be a problem. The question is, what's
the fallout going to be?" said Fred Ketchen, director of equity
trading at ScotiaMcLeod.
    "Until there's clarification, the worries are the banking
industry there will continue to struggle and have a negative
effect on the market for a while," he added.
    Investors also tracked data that showed a rise in U.S.
jobless claims and a sluggish expansion of the U.S. economy in
the fourth quarter of 2012.
    "It's a mixed picture. We are in a period of stagnation"
Ketchen said. "There's more negative emotion in the market than
positive."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 32.06 points, or 0.25 percent, at 12,667.59.
Six of the 10 main sectors and the index were higher.
    Financials, the index's weightiest sector, lost 0.6 percent,
with Royal Bank of Canada giving back 0.8 percent to
C$60.23.
    The materials sector, which includes mining stocks, was down
0.5 percent, with the price of gold declining. Goldcorp Inc
 fell 0.6 percent to C$34.06.
    Shares of BlackBerry gained 2 percent to C$15.09 and helped
the information technology sector rise 0.9 percent.
    "There's some relief. The attitude of the market is, maybe
this is a sign of a turnaround," Ketchen said.
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.