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CANADA STOCKS-TSX down 1 pct, investors sell banks after earnings

Published 2015-12-03, 04:46 p/m
© Reuters.  CANADA STOCKS-TSX down 1 pct, investors sell banks after earnings
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(Adds portfolio manager comment, details; updates prices)
* TSX ends down 139.15 points, or 1.03 percent, at 13,324.67
* Nine of the TSX's 10 main groups fall

By Alastair Sharp
TORONTO, Dec 3 (Reuters) - Canada's main stock index fell
more than 1 percent for a second straight day on Thursday, as
some of its biggest banks retreated despite reporting profit
growth and railway and pipeline stocks also weakened.
The broad move lower was in line with losses in U.S. and
European equity markets as investors expressed disappointment
over the European Central Bank's latest policy easing measures.
.N
Gold miners were the main exception to the fall, gaining as
gold bounced off near six-year lows on the back of a falling
U.S. dollar.
"The rest of the TSX weakness can be attributed to some
profit-taking in the banks as well as significant weakness south
of the border," said Elvis Picardo, a strategist at Global
Securities in Vancouver.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended the day down 139.15 points, or 1.03 percent, at
13,324.67.
Investors overlooked forecast-topping profits reported by
Canadian banks this week, focusing instead on the lenders'
ability to grow in a weak economy reeling from depressed oil
prices.
Toronto-Dominion Bank TD.TO fell 1.4 percent to C$54.30
and Canadian Imperial Bank of Commerce CM.TO declined 2.2
percent to C$98.58. Overall, the financials group lost 1.2
percent.
The ECB cut its deposit rate deeper into negative territory
and extended its asset buys by six months, but disappointed
investors who had expected more.
Meanwhile, comments from U.S. Federal Reserve Chair Janet
Yellen about a likely rate hike there also weighed on sentiment.
"The market is once again getting a bit spooked about the
prospect of higher rates in the U.S.," Picardo said.
Nine of the TSX's 10 main sectors fell.
Canadian National Railway Co CNR.TO lost 2.1 percent to
C$76.74, while Canadian Pacific Railway CP.TO was down 1.7
percent at C$187.80.
Goldcorp Inc G.TO rose 2 percent to C$16.10, while Barrick
Gold Corp ABX.TO was up 1.9 percent at C$10.09.
The energy group was slightly lower despite a 3 percent gain
in crude prices on a falling U.S. dollar and pre-OPEC hedging.
O/R
Enbridge Inc ENB.TO , Canada's largest pipeline company,
fell 3 percent to C$45.82, after raising its quarterly dividend
and announcing a five-year strategic plan.
TransCanada Corp TRP.TO , Canada's second largest pipeline
operator, fell 2.5 percent to C$41.62 after it said it raised
its stake in the Bruce nuclear power plant in Ontario to 48.5
percent.

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