CANADA STOCKS-Financials lead TSX to six-week low on stimulus worries

Wed Jun 12, 2013 5:18pm EDT

* TSX falls 113.68 points, or 0.93 percent, to 12,109.89
    * Nine of 10 main index sectors decline
    * Index touches lowest point since April 24
    * Gold-mining shares climb with bullion price
    * Dollarama sheds 3.4 percent after results

    By Peter N Henderson
    TORONTO, June 12 (Reuters) - Canada's main stock index fell
to its lowest level in more than six weeks on Wednesday as banks
and energy firms were hit by ongoing concerns that central banks
will ease up on monetary stimulus sooner than expected.
    The 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 TSX index has declined in eight of the past nine
sessions. Wednesday's weakness mirrored a broad selloff on U.S.
markets. 
    "We're in a bit of an equity correction phase," said Marcus
Xu, president of Vancouver-based MY Capital Management Corp.
"The markets got used to having the liquidity, the
money-printing habit from all the central bankers. Once that
stops, the market goes down. It's not entirely rational."
    The TSX has lagged U.S. and other major stock markets
sharply this year.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 113.68 points, or 0.9 percent, at
12,109.89, after dropping as low as 12,092.53, its lowest point
since April 24. Nine of the 10 subgroups on the index fell. 
    Financials, the index's most heavily weighted sector,
dropped 0.92 percent. Toronto-Dominion Bank led the
fall, ending the day down more than 1 percent at C$80.82.
    Energy stocks fell 1.34 percent. In the group, Canadian
Natural Resources Ltd closed down 1.4 percent at C$29,
and ARC Resources Ltd dropped 3.27 percent to C$26.61.
    Discount retailer Dollarama Inc fell 3.4 percent to
C$70.13 after its quarterly results disappointed the market. The
dollar store operator blamed poor weather and the cost of
opening new stores for weaker-than-expected first-quarter
earnings. 
    The lone bright spot on the index was the materials group,
which gained 0.08 percent on the back of gold producers, which
were helped by a rise in the bullion price from Tuesday's
three-week low. 
    Goldcorp Inc added 1.3 percent to C$28.65 and had
the biggest positive influence on the index.
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.