CANADA STOCKS-TSX steady as Magna gain offsets drop in gold shares

Fri May 10, 2013 11:29am EDT

* TSX rises 5.42 points, or 0.04 percent, to 12,538.48
    * Six of 10 main sectors advance; Magna jumps after results
    * Gold shares slip as bullion price drops to 2-week low
    * Chorus Aviation tumbles after dividend cut, results

    By John Tilak
    TORONTO, May 10 (Reuters) - Canada's main stock index was
little changed on Friday as a jump in shares of auto parts maker
Magna International Inc after its quarterly results
offset weakness in gold stocks.
    Shares of gold producers slumped after bullion prices fell
more than 2 percent to a two-week low, pressured by a stronger
dollar and rising stocks markets. 
    Investors also digested data showing the Canadian economy,
in April, recovered some of the jobs estimated to have been lost
in March, but the unemployment rate stayed at 7.2 percent.
 
    Magna jumped 5 percent after reporting a
higher-than-expected rise in first-quarter profit on 9 percent
higher revenue, boosted by strong sales in North America.
 
    The company had the biggest positive influence on the index
and fueled a 1.2 percent rise in the consumer discretionary
sector.
    "Obviously, things for Magna are heading in the right
direction," said Fred Ketchen, director of equity trading at
ScotiaMcLeod.
    "It's a well-managed company," he said. "They know what
they're doing, and they are doing it well."
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 5.42 points, or 0.04 percent, at 12,538.48.
    Six of the 10 main sectors on the index were higher.
    The materials sector, which includes mining stocks, lost 1.2
percent, largely impacted by a 2.3 percent decline in gold
shares.
    Energy shares gave back 0.3 percent as oil prices fell.
 
    In other company news, Chorus Aviation Inc shares
sank more than 21 percent after the contract carrier cut its
dividend in half amid an ongoing cost dispute with Air Canada
, the country's biggest airline.
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