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CANADA STOCKS-TSX dips with weaker technology stocks; gold shares cushion losses

Published 2016-02-05, 05:13 p/m
CANADA STOCKS-TSX dips with weaker technology stocks; gold shares cushion losses
XAU/USD
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US500
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GC
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GOLD
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GSPTSE
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ATDb
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BCE
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GIBa
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TD
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GG
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CNI
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(Adds portfolio manager quotes, details on technology stocks,
Alimentation Couche-Tard and Bce, updates prices)
* TSX down 10.51 points, or 0.08 percent, at 12,763.99
* Six of the TSX's 10 main groups fall
* Index falls 0.5 pct for week

By Fergal Smith
TORONTO, Feb 5 (Reuters) - Canada's main stock index dipped
on Friday as a selloff in U.S. technology stocks spilled over to
Canada's technology sector, but defensive names such as gold
stocks helped cushion losses.
Canadian stocks held up better than those on Wall Street
despite a weak Canadian jobs report. Indeed,
Canada's market has fallen less than 2 percent since the start
of 2016, comparing favorably to the 8 percent drubbing suffered
by the S&P 500 .SPX over the same period.
"It does feel that the TSX is trying to find a bottom here,"
said Elvis Picardo, strategist at Global Securities in
Vancouver.
The index fell 0.5 percent for the week, but it has
rebounded nearly 11 percent from the three-year low hit in
January.
The information technology sector fell 4 percent after weak
forecasts from U.S. technology companies weighed on U.S. stocks.
It included a 4.3 percent drop in CGI Group Inc
GIBa.TO to C$57.81.
The most influential movers on the index also included
Canadian National Railway Co CNR.TO which fell 2 percent to
C$74.22 and Alimentation Couche-Tard Inc ATDb.TO , which was
down 2.5 percent at C$58.01.
Toronto-Dominion Bank TD.TO was down 0.4 percent at
C$52.26, while the overall financial services group dipped 0.2
percent.
Financials face a myriad of issues, according to Luciano
Orengo, a portfolio manager at Manulife Asset Management. They
include downward pressure on interest rates and loan-loss
concerns related to the energy sector, but also over-leveraged
consumers and "housing prices sticking out like a sore thumb."
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 10.51 points, or 0.08 percent, at
12,763.99. Six of the index's 10 main groups were in negative
territory.
"The market has gotten a bit cheaper, but it's not at levels
where you will want to be pounding the table to jump in and
buy." said Orengo.
The materials group, which includes precious and base metals
miners and fertilizer companies, rose 2.7 percent.
It included strength in gold stocks after gold XAU= rose
1.5 percent to a three-month high. GOL/ Goldcorp Inc G.TO
rose 6.3 percent to C$19.12, while Barrick Gold Corp ABX.TO
was up 5.1 percent at C$16.19.
Dairy company Saputo rose 4.9 percent to C$36.93 as analysts
upped their price targets on the stock following quarterly
earnings.
Bce Inc BCE.TO rose 1.1 percent to C$58.16.

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