CANADA STOCKS-TSX retreats on gold miner selloff, Ukraine fears

Wed Mar 26, 2014 5:11pm EDT

Related Topics

* TSX falls 115.39 points, or 0.81 percent, to 14,184.10
    * Seven of 10 main index sectors decline
    * Pembina Pipeline jumps after being added to S&P/TSX 60
index

    By John Tilak
    TORONTO, March 26 (Reuters) - Canada's main stock index
slipped on Wednesday, led by a sharp selloff in gold mining
shares and broad declines in most other sectors, after comments
from President Barack Obama revived worries about the crisis in
Ukraine.
    While the United States and the European Union decided to
work together to prepare possible tougher economic sanctions on
Moscow, Obama said Russian President Vladimir Putin had
miscalculated if he thought he could divide the West or count on
its indifference over his annexation of Crimea. 
    Data showed a rebound in orders for long-lasting U.S.
manufactured goods in February, with shipments showing strength
after two straight months of declines. 
    But those bullish numbers weighed on the price of bullion,
which slid toward the $1,300-an-ounce mark. As a result, shares
of the yellow metal's producers recorded their biggest
single-day drop in more than three months. 
    The Toronto market, which has swung back and forth on the
Ukraine developments, has been grinding higher in 2014 and is up
about 4 percent so far this year.
    "The market is taking a little rest here, particularly in
the light of the Ukraine situation," said David Cockfield,
managing director and portfolio manager at Northland Wealth
Management.
    "It's nothing dramatic," he added. "I'm not surprised that
this little bit of consolidation is going on and I'm not that
concerned just yet."
    The Toronto Stock Exchange's S&P/TSX composite index
 ended down 115.39 points, or 0.81 percent, at
14,184.10. Seven of the 10 main sectors on the index were in the
red.
    Financials, the index's most heavily weighted sector, fell
0.5 percent, with Bank of Montreal declining 0.4
percent to C$73.53.
    Energy shares shrugged off higher U.S. crude oil prices,
dropping 0.5 percent. Canadian Natural Resources Ltd 
gave back 1 percent to C$41.35, and Enbridge Inc was
down 0.3 percent at C$49.62.
    Among gold-mining stocks, Goldcorp Inc shed 4.6
percent to C$27.18, and Barrick Gold Corp slipped 4.2
percent to C$19.80.
    Turquoise Hill dropped 1.6 percent, to C$3.76,
after technical problems hurt first-quarter production at the
Oyu Tolgoi copper and gold mine in Mongolia. Turquoise Hill owns
a majority interest in Oyu Tolgoi and is controlled by Rio Tinto
. 
    In other corporate news, Pembina Pipeline jumped as
much as 4.6 percent, hitting a 52-week high, after being added
to the S&P/TSX 60 index late on Tuesday.
    "There's no hype to Pembina Pipeline. It's a real company
that delivers the goods," said Barry Schwartz, a portfolio
manager at Baskin Financial, which owns the stock. "What I care
about is owning companies that provide products and services
that we cannot live without, and Pembina Pipeline is one of
them."

 (Editing by Chris Reese and G Crosse)
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