CANADA STOCKS-Energy shares pull TSX lower; BlackBerry, Cameco gain

Tue Feb 25, 2014 5:32pm EST

* TSX falls 38.10 points, or 0.27 percent, to 14,188.98
    * Seven of 10 main index sectors decline
    * BMO little changed after quarterly report
    * BlackBerry jumps after it unveils new models
    * Tim Hortons up on plans to open new stores

    By John Tilak
    TORONTO, Feb 25 (Reuters) - Canada's main stock index fell
on Tuesday as a drop in shares of some energy producers,
following a selloff in the price of oil, more than offset gains
in BlackBerry Ltd and Cameco Corp.
    BlackBerry shares jumped nearly 8 percent after the
smartphone maker unveiled a cheaper touch screen smartphone and
a "classic" model with a keyboard. 
    Despite Tuesday's decline, the Toronto market is up about
4.2 percent this year on a recent string of gains.
    Nonetheless, investors should be prepared for choppy markets
this year, said Adrian Mastracci, portfolio manager at KCM
Wealth Management.
    "You need to get used to a roller coaster. It's going to be
volatile," he said. "If things are getting beat up, buy some
quality." 
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 38.10 points, or 0.27 percent, at
14,188.98. The Canadian benchmark index has done better than the
S&P 500, its U.S. counterpart, so far in 2014.
    Seven of the 10 main sectors on the index were in the red.
    Energy shares fell 0.5 percent. Canadian Natural Resources
Ltd shed 0.5 percent to C$40.82, and Encana Corp
 dropped 1.5 percent to C$21.15.
    The materials sector, which includes mining stocks, slipped
0.8 percent, with Teck Resources Ltd losing 2 percent
to C$24.49. 
    Financials, the index's most heavily weighted sector, were
little changed, but investors paid attention to the group as the
bank earnings season got under way this week. 
    Bank of Montreal edged up to C$72.63 after the
lender'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.
 
    National Bank of Canada jumped 1.4 percent, to     
C$44.23, after the country's sixth-largest lender late on Monday
reported a 9 percent rise in first-quarter profit, driven by
stronger wealth management and financial markets income.
 
    Shares of Cameco shot up 8.2 percent to C$25.42. Analysts
said Cameco and other uranium miners were buoyed by a shift in
Japanese policy that favors a return of nuclear power to the
country's energy mix.
    "Uranium prices have been in the tank for quite some time,
mainly due to all of Japan's 48 operable reactors being offline
- so there's a pretty big supply overhang," said Daniel Rohr, an
analyst with Morningstar. 
    "This news is an important step in getting those reactors
back online, getting them consuming uranium again and getting
rid of that supply overhang that kept uranium prices at trough
levels."
    Tim Hortons climbed after the coffee chain said it will open
at least 800 new restaurants over the next five years under a
strategic plan to secure its dominance in Canada and boost
returns in the United States.
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