CANADA STOCKS-TSX slips on dip in banks, CN Rail; gold stocks gain

Mon Apr 22, 2013 11:16am EDT

* TSX falls 32.06 points, or 0.27 percent, to 12,033.49
    * Six of 10 main sectors decline.
    * CN Rail slips ahead of the earnings report

    By John Tilak
    TORONTO, April 22 (Reuters) - Canada's main stock index
stumbled on Monday as declines in the financial sector and in
Canadian National Railway Co overshadowed strength in
gold shares, which were supported by rising bullion prices.
    The weakness came after the resource-heavy index's
second-biggest weekly decline of the year, triggered by a
massive commodities rout, when gold prices posted their
biggest-ever drop.
    Toronto stocks are down 3.2 percent on the year so far.
    "Unquestionably, there is a degree of caution," said John
Ing, president of Maison Placements Canada. "A great many
portfolio managers are licking their wounds. This has been a
very dramatic correction on the resources."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 32.06 points, or 0.27 percent, at 12,033.49.
    Six of the 10 main sectors of the index were in the red.
    Financials, the index's most heavily weighted sector, gave
back 0.5 percent. Royal Bank of Canada, the country's
biggest bank, slipped 1.1 percent to C$60.80 and played the
biggest role of any single stock in leading the market lower.
    Shares of CN Rail declined 0.5 percent to C$98 ahead of the
rail carrier's first-quarter earnings report. 
    Investors are paying attention to the Canadian earnings
season that gets underway. Strategists said first-quarter
results are expected to be lackluster, but recently lowered
expectations could provide market upside. 
    Monday's jump in shares of gold companies, following a
more-than 2 percent gain in the price of the precious metal,
helped the materials group. 
    Investors are buying gold because of lower prices following
the sharp sell-off last week, Ing said. "The gold correction was
overdone. So we're getting the inevitable bounce."
     Goldcorp Inc added 1.8 percent to C$29.10 and
Eldorado Gold Corp was up 4 percent to C$7.52.
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