CANADA STOCKS-TSX steady after ECB moves to cut rates

Thu Jun 5, 2014 4:51pm EDT

* TSX down 3.39 points, or 0.02 percent, at 14,800.18
    * Six of 10 main index sectors advance
    * Canadian Western Bank falls after reporting results

    By John Tilak
    TORONTO, June 5 (Reuters) - Canada's main stock index was
little changed on Thursday as  energy and bank shares declined
after the European Central Bank moved to cut rates to record
lows, offsetting a jump in the gold-mining sector.
    The ECB set in motion a range of measures targeted at
tackling low inflation as it cut rates, imposed negative
interest rates on its overnight depositors and offered banks new
long-term funds. 
    The price of bullion jumped after the announcement, helping
to support a 1.5 percent rise in the shares of gold producers.
    Overall, the Toronto market, which hit a near six-year high
in the previous session, is up more than 8 percent this year.
    "This market climbs walls of worry, as well as complacency,"
said John Ing, president of Maison Placements Canada.
    "We've not had a meaningful correction yet, and we're due
for that. "(Valuations) show that the market is expensive, and
one should always be cautious as the market makes daily highs."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 3.39 points, or 0.02 percent, at 14,800.18.
Six of the 10 main sectors on the index were higher.
    Financials, the index's most heavily weighted sector, gave
back 0.2 percent. Royal Bank of Canada lost 0.4 percent
to C$74.57, and Bank of Nova Scotia declined 0.5
percent to C$70.18.
    The shares of energy producers edged lower. Suncor Energy
Inc shed 0.3 percent to C$42.42, and Talisman Energy Inc
 was down 0.5 percent at C$11.11.
    Among gold-mining shares, Goldcorp Inc rose 1.4
percent to C$25.46, and Barrick Gold Corp added 0.9
percent to C$17.56.
    In corporate news, Canadian Western Bank reported a
19 percent rise in fiscal second-quarter net profit and raised
its dividend. The stock fell 0.8 percent to C$38.04.
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.