CANADA STOCKS-TSX falls as telecoms, gold miners tumble

Wed Jun 26, 2013 11:14am EDT

* TSX falls 41.41 points, or 0.34 percent, to 11,964.01
    * Six of 10 main index sectors advance
    * Telecoms stocks drop 5 percent on Verizon fears
    * Gold miners down 4 percent as bullion dives

    By John Tilak
    TORONTO, June 26 (Reuters) - Canada's main stock index fell
on Wednesday as telecoms stocks dropped after reports that big
U.S. player Verizon Communications Inc is looking to
enter the Canadian market, while tumbling bullion prices dragged
gold miners lower.
    The weakness in the two sectors more than offset gains in
the financial sector after U.S. data helped calm fears of a
stimulus rollback.
    Revised figures showed U.S. economic growth in the first
quarter was slower than first reported, held back by a moderate
pace of consumer spending, weak business investment and
declining exports. 
    "The news is negative all over for Canada," said Sal
Masionis, a stockbroker at Brant Securities. "The U.S. GDP
number doesn't bode too well for our manufacturing."
    Reports that Verizon has offered to buy Canadian startup
Wind Mobile and is also in talks with rival startup Mobilicity
pulled telecoms shares down more than 5.1 percent.
 
    "Verizon is a threat but a long-term threat," Masionis said.
"It will take years to get some competition going."
    Canada's three dominant telecoms companies all fell hard.
BCE Inc lost 4.2 percent to C$41.51, Telus Corp 
fell 6 percent to $31.36, and Rogers Communications Inc
 was down 8.3 percent at C$42.10. The three played the
biggest role in the index's fall.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 41.41 points, or 0.34 percent, at 11,964.01,
although six of the 10 main sectors on the index were higher.
The TSX had jumped 1.4 percent in the previous session.
    The materials sector, which includes mining stocks, gave
back 1.7 percent. Shares of gold producers fell 4 percent as the
bullion price slumped to a near three-year low.
     "People are panicking. Gold has to go through a bottoming
process," Masionis said. He expects the commodity to fall
another $100 before a possible recovery.
    Barrick Gold Corp fell 5 percent to C$16.06, and
Goldcorp Inc was down 3.3 percent at C$23.81.
    Financials, the index's most heavily weighted sector, were
up 0.4 percent. Royal Bank of Canada, the country's
biggest lender, climbed 0.8 percent to C$60.60, and
Toronto-Dominion Bank added 0.6 percent to C$83.29.
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article