CANADA STOCKS-TSX falls to 1-1/2-month low as Dollarama stumbles

Wed Jun 12, 2013 11:09am EDT

* TSX falls 10.42 points, or 0.09 percent, to 12,213.15
    * Seven of 10 main index sectors decline
    * Gold-mining shares climb with bullion price
    * Dollarama sheds 3.8 percent after results

    By John Tilak
    TORONTO, June 12 (Reuters) - Canada's main stock index
dropped to its lowest level in more than six weeks on Wednesday
as shares of Dollarama Inc fell sharply after the
retailer posted quarterly results that disappointed the market,
offsetting gains in gold miners.
    The dollar store operator gave back 3.8 percent after it
reported weaker-than-expected first-quarter earnings, hurt by
poor weather and the cost of opening new stores. 
    Wednesday's drop on the resource-heavy Canadian benchmark
index extended the steep losses of the previous session as
concerns about whether the U.S. Federal Reserve will roll back
its stimulus program failed to go away. The index has declined
in eight of the last nine sessions and has sharply lagged U.S.
and other major stock markets this year.
    "The market seems to be very vulnerable," said David
Cockfield, managing director and portfolio manager at Northland
Wealth Management.
    "My concern is that we may be seeing significant money
moving out of Canada into the United States, one of the reasons
why we may be underperforming." 
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 10.42 points, or 0.09 percent, at 12,213.15,
after slipping as low as 12,191.39, its lowest point since April
26. Seven of the 10 main index sectors were in the red.
    Financials, the index's most heavily weighted sector, gave
back 0.2 percent. In the group, Toronto-Dominion Bank 
was down 0.3 percent at C$81.39.
    Telecoms shares slipped 1.3 percent, and energy stocks fell
0.4 percent.
     But a rise in the bullion price boosted shares of gold
producers and helped the materials group climb 0.8 percent.
 Miner Barrick Gold Corp added 2.2 percent to
C$20.42 and had the biggest positive influence on the market.
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