CANADA STOCKS-Yamana, resources drag TSX lower; Tim Hortons jumps

Wed May 1, 2013 11:24am EDT

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* TSX falls 99.19 points, or 0.80 percent, to 12,357.31
    * Eight of 10 main sectors decline
    * Talisman drops after earnings report
    * Yamana Gold down 9 percent after profit drops
    * Tim Hortons jumps 4 percent after investor turns activist

    By John Tilak
    TORONTO, May 1 (Reuters) - Canada's main stock index fell on
Wednesday, hurt by weak economic data from China that drove
commodity prices lower and disappointing earnings reports from
some of the country's biggest companies.
   Growth of the manufacturing sector in China, a big consumer
of commodities which Canada exports, unexpectedly slowed in
April as new export orders fell, raising fresh doubts about the
strength of the economy after a disappointing first quarter.
 
    Investors were also nervous about an expected statement from
the U.S. Federal Reserve later in the day and a possible
interest rate cut by the European Central Bank on Thursday.
    Offsetting some of the weakness were gains in shares of Tim
Hortons Inc, after a large investor called for changes,
and in Loblaw Cos Ltd after the company reported
first-quarter results. 
    The Toronto market, which recorded its second-biggest
percentage jump of the year so far on Tuesday, gave up some of
those gains and slipped back into negative territory for the
year.
     Miner Yamana Gold Inc recorded one of the biggest
declines, falling 9 percent after reporting quarterly results,
and the price of bullion weighed further as holidays in China
and parts of Europe slowed gold buying. 
    "Their results were lousy," said John Ing, president of
Maison Placements Canada, of Yamana's first-quarter performance.
"Higher costs were definitely a factor, but they were
disappointing."
    He said the lower bullion price was hurting gold miners,
which have lost about 35 percent of their market value since the
start of the year.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 99.19 points, or 0.80 percent, at 12,357.31.
     Eight of the 10 sectors on the index were in the red.
    The materials sector, which includes mining stocks, declined
2.2 percent.
    Yamana reported a 40 percent drop in first-quarter profit
late on Tuesday as lower gold prices and higher costs outweighed
a boost in production. The stock was down at C$11.36.
 
    Energy shares gave back 1.7 percent as oil prices slipped.
 
    Suncor Energy Inc shed 1.6 percent and played one of
the biggest roles of any single stock in leading the market
lower.
    Talisman Energy Inc's shares fell 6 percent after
the oil and gas company posted a quarterly loss as the sale of
some North Sea assets hurt production. 
    Tim Hortons has come under pressure from a large investor to
aggressively boost returns through debt-funded share buybacks
and a scaling back of U.S. expansion plans, according to
documents seen by Reuters and two sources familiar with the
matter. The stock added 4 percent to C$56.78.
    Shares of Loblaw jumped 5 percent to C$44.89 after the
grocery chain reported a 40 percent increase in first-quarter
profit and said it plans to compete the initial public offering
of its real estate investment trust in early to mid-July.
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