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CANADA STOCKS-TSX dips as Pembina, resources, and Home Capital weigh

Published 2017-05-01, 05:17 p/m
© Reuters.  CANADA STOCKS-TSX dips as Pembina, resources, and Home Capital weigh
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* TSX down 11.13 points, or 0.07 percent, to 15,575

* Four of the TSX's 10 main groups fall

* Pembina stock falls 3.3 percent to C$42.05; Veresen up 19 percent to C$18.13

* Home Capital Group falls 13.4 percent to C$6.96

By Solarina Ho

TORONTO, May 1 (Reuters) - Canada's main stock index dipped marginally on Monday, pulled lower in part by acquisition news from Pembina Pipeline Corp PPL.TO and broad declines among mining companies.

News of Pembina's C$9.7 billion stock-and-cash deal for Veresen Inc VSN.TO sent shares down 3.3 percent to C$42.05, while smaller rival, Veresen rose 19.0 percent to C$18.13. overall energy group retreated 0.2 percent.

The heavily weighted financials group failed to make headway and remained little changed, as modest gains by Canada's five biggest banks were offset by another tumble in Home Capital Group Inc HCG.TO , Canada's biggest non-bank mortgage lender.

Shares slumped 13.4 percent to C$6.96 as depositors pulled more money out of the troubled lender. Last month, regulators accused the company of making "materially misleading statements" to investors. Capital seems to be in the crosshairs of people who want to short the stock, or short Canada," said Ian Nakamoto, equity specialist at MacDougall, MacDougall & MacTier, a division of Raymond James.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE dipped 10.5 points, or 0.07 percent, to 15,575.63. Four of the index's 10 main groups retreated.

"For Canada, it's been a very disappointing market for the last little while," said Nakamoto, noting concerns over oil and the overheated housing sector that was spilling into the financial services sector.

The materials group, home to precious and base metals miners as well as fertilizer companies, lost close to 1.4 percent. A slew of gold mining firms fell nearly 2 percent or more, tracking bullion prices that fell 1 percent to a three-week low.

Barrick Gold Corp ABX.TO was the most influential decliner, falling 1.9 percent to C$22.38, while Eldorado Gold Corp ELD.TO sank 6.2 percent to C$4.68.

Shaw Communications SJRb.TO stock rose 0.3 percent to C$29.02 following news late on Friday that the Canadian cable company is looking for a buyer for its U.S. data center company, ViaWest. The overall consumer discretionary group rose 0.5 percent. information technology group ended 1.4 percent higher, while healthcare stocks were up just over 1 percent.

Advancing issues outnumbered declining ones on the TSX by 125 to 118, for a 1.06-to-1 ratio on the upside.

The index was posting 22 new 52-week highs and 3 new lows.

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