(New throughout, updates prices and market activity to close,
adds portfolio manager comment)
* TSX ends down 0.41 points at 13,769.99
* Half of the TSX's 10 main groups fall
By Alastair Sharp
TORONTO, May 12 (Reuters) - Canada's main stock index ended
flat on Thursday, with lower commodity prices weighing on
miners, offsetting gains for most major banks and some energy
companies trying to restart production after a raging wildfire.
Enbridge Inc ENB.TO added 1.9 percent to C$51.69 as it
said it was steadily resuming service on its pipeline network
through Canada's energy heartland about a week after the fire
shut down operations in the Fort McMurray, Alberta area.
It also reported a higher-than-expected quarterly profit.
CNOOC Ltd's Nexen 0883.HK CEO.N told customers it may
not be able to fulfill its supply contracts.
The overall energy sector rose 0.3 percent.
Crescent Point Energy Corp CPG.TO rose 4.9 percent to
C$21.36 despite reporting a bigger quarterly loss. The company,
whose shares have lost a third of their value in the last 12
months, said it would have C$300 million of excess free cash
flow for 2016 if oil prices average $45 a barrel.
Gold miners were among the heaviest weights on the index, as
a stronger U.S. dollar pressured bullion prices. GOL/
Goldcorp Inc G.TO fell 3.9 percent to C$23.15 and Barrick
Gold Corp ABX.TO lost 1.9 percent to C$23.27.
The materials group, which includes precious and base metals
miners and fertilizer companies, lost 1.8 percent.
"The resource areas of the market have been extremely strong
this year and likely are going to see a pullback here given they
look pretty stretched and likely overbought," said Youssef
Zohny, portfolio manager at StennerZohny Investment Partners+ of
Richardson GMP Ltd.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 0.41 points, or flat on a percentage
basis, at 13,769.99. It touched a 10-day high earlier in the
session.
Healthcare stocks were down 0.7 percent, with Valeant
Pharmaceuticals International Inc VRX.TO falling 5.6 percent
to C$31.94. A key figure at a major hedge fund invested in the
battered drug company is leaving the fund, its founder said.
The financials group gained 0.5 percent, with Royal Bank of
Canada RY.TO up 0.5 percent at C$76.97 and Bank of Montreal
BMO.TO adding 0.5 percent to C$81.88.
The country's biggest banks will report quarterly earnings
starting on May 25, and Zohny said they could be poised to
disappoint given decent valuations and the risk of surprisingly
large loan loss provisions.
National Bank of Canada NA.TO has already warned that it
expects bad loans in the oil and gas space to hurt its earnings.
Half of the index's 10 main groups were in positive
territory, with advancers slightly outnumbering decliners.
Canadian Tire Corp CTCa.TO gained 4.5 percent to C$145.37
after the retailer beat profit expectations.