CANADA STOCKS-TSX slips after U.S. jobs report; miners gain

Fri Aug 1, 2014 10:39am EDT

* TSX down 39.69 points, or 0.26 percent, at 15,291.05
    * Eight of 10 main index sectors decline
    * Gold-mining shares climb with bullion price

    By John Tilak
    TORONTO, Aug 1 (Reuters) - Canada's main stock index
declined in choppy trading on Friday as investors tried to gauge
the impact of a sluggish U.S. jobs report on the Federal
Reserve's plans to raise interest rates.
    The Toronto market extended its descent after a sharp drop
in the previous session, when uncertainty about the Fed's
outlook for interest rates, a default by Argentina and
geopolitical tensions weighed.
    Government data showed U.S. employers added fewer jobs than
expected in July and the unemployment rate climbed.
 
    "After yesterday's rout in the marketplace, the jobs number,
while slightly below expectations, reaffirms that the U.S.
economy is on track," said Philip Petursson, managing director,
portfolio advisory group, at Manulife Asset Management, who is
bullish about the prospects for the Canadian equity market.
    "My assessment is that the market is fully valued, not
overvalued," he said. "We do not see any fundamental cracks and
will not be calling for investors to be defensive at this
point."
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 39.69 points, or 0.26 percent, at 15,291.05.
Eight of the 10 main sectors on the index were lower.
    Financials, the index's most heavily weighted sector, gave
back 0.4 percent. Royal Bank of Canada lost 0.4 percent
to C$80.17, and Toronto Dominion Bank declined 0.5
percent to C$56.74.
    The gold-mining sector jumped 1.3 percent, with the price of
bullion gaining after the U.S. jobs report. Barrick Gold Corp
 added 1 percent to C$19.90, and Goldcorp Inc 
advanced 1.8 percent to C$30.41.
    Eldorado Gold Corp shot up 6.6 percent to C$8.62, a
day after the miner reported quarterly results.
    Valeant Pharmaceuticals International Inc's shares,
which tumbled on Thursday after the company cut its forecast,
rebounded. They were up 2 percent, at C$130.36, and helped boost
the healthcare sector. 

 (Editing by Meredith Mazzilli)