CANADA STOCKS-TSX falters as Goldcorp, energy shares drop

Mon Jan 13, 2014 4:42pm EST

* TSX falls 66.04 points, or 0.48 percent, to 13,681.48
    * Eight of 10 main index sectors decline
    * Goldcorp down 1 percent, Osisko up 20.7 percent
    * Magna climbs after Barron's report

    By John Tilak
    TORONTO, Jan 13 (Reuters) - Canada's main stock index
dropped on Monday as shares of Goldcorp Inc declined
after the miner made a $2.6 billion ($2.4 billion) offer to
acquire a smaller rival and shares of energy producers fell on
weaker oil prices. 
    Goldcorp launched an unsolicited cash-and-stock bid to buy
Osisko Mining Corp to gain control of Osisko's Malartic
gold mine in Quebec. 
    Further dampening the mood, the price of oil sold off on
news of a deal between Western nations and Iran to curb the
country's nuclear program. 
    Investors were also cautious about what the U.S. and
Canadian earnings seasons, just getting underway, will bring.
    The Canadian benchmark index, which rose 9.6 percent last
year, eased on Monday after four straight days of gains.
    The market will be volatile this year, said Marcus Xu,
portfolio manager at MY Capital Management Corp in Vancouver,
but he predicted the TSX benchmark will perform more strongly
than it did last year.
    "The sentiment is starting to improve. A lot of people are
starting to warm up to (Canadian equities)," he said.
     The Toronto Stock Exchange's S&P/TSX composite index
 closed down 66.04 points, or 0.48 percent, at
13,681.48, after reaching as high as 13,771.13 earlier in the
session, its highest level since mid-2011.
    Eight of the 10 main sectors on the index were in the red.
    Energy shares gave back 1.3 percent. In the group, Suncor
Energy Inc lost 1.8 percent to C$37.27, and Canadian
Natural Resources Ltd declined 0.9 percent to C$35.85.
    Financials, the index's most heavily weighted sector, were
down 0.4 percent, with Manulife Financial Corp dropping
2.3 percent to C$21.59.
    But auto-parts maker Magna International advanced
0.5 percent to C$90.73 after Barron's, in a report on Sunday,
said a possible recovery in the European car market could lift
Magna shares in 2014. 
    The gold-mining sector ended in positive territory, though
Goldcorp weakened 1 percent to C$25.04. Osisko shot up 20.7
percent to C$6.24.
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