CANADA STOCKS-TSX drops for 5th straight day, hits 1-month low

Thu Jun 6, 2013 11:22am EDT

* TSX falls 36.85 points, or 0.30 percent, to 12,406.80
    * Seven of 10 main sectors decline
    * Index turns negative on year
    * Bombardier jumps after contract

    By John Tilak
    TORONTO, June 6 (Reuters) - Canada's main stock index fell
for a fifth straight session on Thursday, dragged by weaker
financials to a one-month low, as investors digested comments
from the European Central Bank and remained nervous about an
upcoming U.S. jobs report.
    With the day's drop, the index has turned negative on the
year.
    The European Central Bank kept interest rates unchanged and
President Mario Draghi said the bank's policy would remain
accommodative for as long as needed, signaling a readiness to
keep rates low for months to come, to aid an economic recovery.
 
     U.S. job growth probably picked up only slightly in May, an
influential report is expected to show on Friday, suggesting the
economy is still in a rut and not ready for the Federal Reserve
to dial back its monetary support. 
    "We're getting fixated on the jobs number because we may or
may not be at an inflection point with interest rates backed
up," said Paul Hand, managing director at RBC Capital Markets.
    "So there's a heightened sense of sensitivity around this
week's number."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 36.85 points, or 0.30 percent, at 12,406.80.
It earlier slipped to its lowest since May 3.
    The resource-heavy market has underperformed its U.S. peers
because sluggish commodity prices have weighed on sentiment.
    "We're trapped between the resource stocks and the other
sectors," Hand said. "To get things going, the resource sector
has to gain, and it will depend more on the global economy, not
just the North American economy, being robust."
    Financials, the index's most heavily weighted sector, gave
back 0.4 percent.
    Toronto Dominion Bank, the country's second-biggest
lender, lost 0.8 percent to C$82.20 and played the biggest role
of any single stock in leading the market lower.
    Shares of energy producers gained 0.4 percent after a rise
in the price of oil. 
    Husky Energy rose 1 percent to C$29.41.
    The materials sector, which includes mining stocks, was
little changed.
    In company news, Bombardier Inc's train unit said
it received an order worth about $771 million for a new
generation metro fleet from the Stockholm Public Transport
Authority. The stock climbed 1.2 percent to C$4.92 and was one
of the most influential gainers on the market.
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A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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