CANADA STOCKS-TSX slips as golds, financials offset Canadian Tire rise

Thu May 9, 2013 11:15am EDT

* TSX falls 21.03 points, or 0.17 percent, to 12,564.02
    * Five of 10 main sectors decline
    * Canadian Tire jumps 14 percent after plans to create REIT
    * Sun Life falls more than 2 percent after profit drop
    * Bombardier up after CSeries comments, earnings gain

    By John Tilak
    TORONTO, May 9 (Reuters) - Canada's main stock index fell on
Thursday as declines in financial stocks and gold producers
offset a jump in Canadian Tire Corp after the retailer
unveiled plans for a real estate investment trust. 
    Investors also tracked data showing U.S. jobless claims
unexpectedly fell in the latest week, dropping to their lowest
level in more than five years. The news weakened bullion prices
and weighed on gold stocks. 
    The Toronto market eased from a one-month high it hit in the
previous session and a five-day winning streak.
    "We're due for a correction, and then we'll probably have a
rally in the fall," said John Ing, president of Maison
Placements Canada.
    He said the outlook for the index depended on the
performance of gold companies and the energy sector, which make
up a big part of the index.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 21.03 points, or 0.17 percent, at 12,564.02.
    Canadian Tire said it will create a C$3.5 billion ($3.5
billion) REIT through an initial public offering in the fall of
2013, sending its shares up 14 percent. 
    "It's a marvelous time," Ing said. "There's no question that
there is demand, and there is no question that they have lots of
real estate."
    "There is a desperation for yield," he said. "These chains
have been sitting on classic real estate, and they're offering
yield in a yield-hungry market."
    Grocer Loblaw Companies Ltd announced a similar plan
in December to spin off the vast majority of its property assets
to create one of Canada's biggest REITs. 
    Five of the 10 main sectors on the index were in the red.
    Financials, the index's most heavily weighted sector, gave
back 0.4 percent.
    Sun Life Financial slipped 2.4 percent after it
reported a 25 percent drop in first-quarter profit on Wednesday
as the insurer was hurt by less favorable financial markets than
in the year-before period. 
    The materials sector, which includes mining stocks, declined
0.7 percent. Barrick Gold Corp fell nearly 1 percent to
C$21.29.
    In other company news, Bombardier Inc said its
CSeries jetliner was on track to make its first flight in June
and reported a 25 percent jump in first-quarter revenue on
robust growth at its aerospace unit. The stock rose 4.3 percent
to C$4.41.
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