CANADA STOCKS-TSX steady as financials offset fall in Catamaran, Goldcorp

Thu May 2, 2013 11:32am EDT

* TSX down 7.56 points, or 0.06 percent, at 12,313.73
    * Six of 10 main index sectors decline
    * Goldcorp falls 2 percent after profit drops
    * Catamaran, Valeant stumble after results
    * Manulife rises 4 percent after earnings report

    By John Tilak
    TORONTO, May 2 (Reuters) - Canada's main stock index was
little changed on Thursday as weakness in some healthcare and
material stocks after weak earnings reports offset optimism
following a move by the European Central Bank to cut interest
rates.
    The market was disappointed by results from Goldcorp Inc
, Catamaran Corp and Valeant Pharmaceuticals
International Inc, but cheered Manulife Financial
Corp's quarterly report.
    The European Central Bank cut interest rates for the first
time in 10 months, promising to provide as much liquidity as
euro zone banks need well into next year and to help smaller
companies get access to credit.       
    But investors were discouraged by data that showed
manufacturing across the world stumbled last month, underlining
the fragility of the global economy and building the case for
more action by leading central banks. 
    The resource-sensitive Toronto index, whose growth is
closely tied to the global economy, is down about 1 percent on
the year, trailing its peers like the S&P 500.
    Investors need to be selective about where they need to put
their money, said Julie Brough, vice president at Morgan Meighen
& Associates. "This is a stock picker's market; it's not an
indexing market."
    "To get the index aggressively moving upward again, you need
some support from the resources," she added. "Right now we don't
have the foundation for that."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 7.56 points, or 0.06 percent, at 12,313.73. 
    Six of the 10 main sectors on the index were in the red.
    The materials sector, which includes mining stocks, was down
0.6 percent.
    Shares of Goldcorp fell 2 percent after the miner reported a
35 percent drop in first-quarter profit as lower metal prices
and higher costs outweighed a boost in gold sales.
 
    The healthcare group gave back 2.6 percent. 
    Catamaran tumbled 8.9 percent after the pharmacy benefit
manager reported first-quarter results, playing the biggest role
of any single stock in leading the market lower.
    Valeant lost 1 percent after the drugmaker reported
first-quarter results and said it would seek acquisitions in
markets avoided by its stiffest competition. 
    Providing some support was Manulife, up 4 percent, after the
insurer reported a 56 percent drop in first-quarter earnings but
met market estimates. 
    That helped the financials, the index's most heavily
weighted sector, gain, 0.3 percent.
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