CANADA STOCKS-TSX slips as energy shares drop with oil; banks gain

Tue Feb 25, 2014 11:05am EST

* TSX falls 23.92 points, or 0.17 percent, to 14,203.16
    * Five of 10 main index sectors decline
    * BMO climbs after quarterly report
    * BlackBerry jumps after it unveils new models

    By John Tilak
    TORONTO, Feb 25 (Reuters) - Canada's main stock index
slipped on Tuesday after a selloff in the oil price caused
shares of energy producers to decline, offsetting gains in Bank
of Montreal and BlackBerry.
    BMO's quarterly profit rose 2 percent, topping estimates, as
strength in its Canadian branch-banking business and lower loan
loss provisions offset a weak performance at its U.S. operation.
 
    BlackBerry shares jumped nearly 8 percent after the
smartphone maker unveiled a cheaper touchscreen smartphone and a
"classic" model with a keyboard. 
    Despite Tuesday's decline, the Toronto market is up about
4.3 percent this year on the back of a recent string of gains.
    "The market needs a little rest. We've had a record run,"
said David Cockfield, managing director and portfolio manager at
Northland Wealth Management.
    "A little backing and filling is probably justified," he
added. "But I don't think we're into a major selloff here."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 23.92 points, or 0.17 percent, at 14,203.16.
The Canadian benchmark index has done better than the S&P 500
, its U.S. counterpart, so far in 2014.
    Cockfield expects the TSX to rise about 9-10 percent this
year: "I still think we will continue to outperform the U.S.
market as the year progresses, simply because our P/E multiples
are lower."
    Five of the 10 main sectors on the index were in the red on
Tuesday.
    Energy shares declined 0.8 percent. Canadian Natural
Resources Ltd shed 1.3 percent to C$40.51, and Encana
Corp fell 1.9 percent to C$21.07.
    The materials sector, which includes mining stocks, slipped
0.4 percent, with Teck Resources Ltd losing 2 percent
to C$24.49. 
    Financials, the index's most heavily weighted sector,
climbed 0.2 percent. Royal Bank of Canada added 0.5
percent to C$72.82, and BMO advanced 0.8 percent to C$73.15.
    National Bank of Canada also gained, to C$43.91,
after the country's sixth-largest lender reported late on Monday
a 9 percent rise in first-quarter profit, driven by stronger
wealth management and financial markets income.
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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