* TSX up 2.69 points at 11,548.23
* Rogers Communications results boost index
* China PMI data lifts mining shares
* Weak euro zone data, Germany fears weigh
By Jon Cook
TORONTO, July 24 Canada's main stock index was
little changed on Tuesday as solid earnings from telecoms leader
Rogers Communications Inc and upbeat China data were
offset by euro zone fears, including a potential credit ratings
downgrade for Germany.
Despite a dip by most of Canada's 10 main sectors, the index
hovered near break even. The safe-haven telecommunications
sub-index led gains, rising 1.6 percent after earnings from
Rogers Communications, Canada's largest mobile phone company,
Rogers Communications shares jumped 5.4 percent to C$39.25
after it reported higher adjusted earnings on Tuesday as profit
margins rose in its cellular phone business even as competition
"The news story today is Rogers," said Barry Schwartz, vice
president and portfolio manager at Baskin Financial Services. "I
guess people were expecting them to cut their guidance, and the
fact that they had such a material beat maybe tells us that they
could have raised their guidance."
In June, Rogers said it had cut 375 jobs to trim costs amid
tough competition. The company employs about 30,000 people.
The Rogers results were also supported by strong
second-quarter results from U.S. counterpart AT&T Inc,
which reported a higher-than-expected quarterly profit due to
strength in its wireless business.
The heavily weighted materials group, which includes miners,
also rose, gaining 0.6 percent, after China's flash factory
purchasing managers index rose in July to its highest level
Recent numbers have suggested a slowdown in China's economy,
which has dampened demand for metals and hurt Canadian mining
companies. On Tuesday that trend reversed.
Gains were led by top gold miners Goldcorp, up 1.2
percent at C$33.89, and Barrick Gold, which climbed 0.4
percent to C$34.27.
Eldorado Gold Corp jumped 4.3 percent to C$10.39
after a Greek court revoked an order that temporarily stopped
work at the Canadian company's gold mining project in the north
of Greece, Eldorado said on Tuesday.
Around 11:20 a.m. EDT (1520 GMT), the Toronto Stock
Exchange's S&P/TSX composite index was up 2.69 points
at 11,548.23. The index initially opened down.
Trading remained volatile, however, as a German purchasing
managers' survey showed private sector activity in Europe's
largest economy contracted for a third month. Markit's composite
purchasing managers index slipped to a reading of 47.3 this
month from 48.1 in June, the fastest rate of decline since June
German bond yields were also rising after ratings agency
Moody's revised down its outlook for the country, citing the
costs associated with a potential Greek exit from the euro zone
and the possible need to provide support to both Spain and
The Moody's warning did not faze Schwartz. "Moody's can say
what it wants about Germany," he said, "but all you have to do
is look at the bond yields and the demand for its credit is
huge, because everybody else is in the deep dark recesses of an
Canadian financials sank 0.3 percent on the euro zone worry,
which has escalated on fears that debt-ravaged Spain may require
a full blown bailout similar to the ones handed to Ireland,
Portugal and Greece.
Toronto-Dominion Bank slid 0.3 percent to C$78.81
and Bank of Nova Scotia slumped 0.4 percent to C$51.20,
to lead the sector's declines.
A day after Nexen Inc's $15-billion takeover bid by
China's state-owned oil company CNOOC boosted energy
shares, Canada's oil and gas patch fell 0.6 percent on Tuesday.
The biggest decliners included Canadian Natural Resources
, down 1.6 percent to C$28.32, Cenovus Energy,
which fell 1.2 percent to C$32.85, and Encana Corp, off
1.7 percent at C$21.16.