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CANADA STOCKS-TSX ends slightly lower as Home Capital, big banks weigh

Published 2017-05-12, 04:56 p/m
© Reuters.  CANADA STOCKS-TSX ends slightly lower as Home Capital, big banks weigh
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(Adds comment from equity analyst, updates prices to close)

* TSX ends down 12.67 points, or 0.08 percent, at 15,537.88

* Six of the TSX's 10 main groups finish lower

* Index down 0.3 percent over the week

By Alastair Sharp

TORONTO, May 12 (Reuters) - Canada's main stock index closed marginally lower on Friday, weighed by alternative lender Home Capital Group Inc HCG.TO after it acknowledged uncertainty about its ability to continue as a going concern, while natural resource stocks lent support.

The broader financials group slipped 0.5 percent overall as a fall in U.S. bond yields after weaker-than-expected inflation data also weighed. time you have the U.S. 10-year making a big move like that, six beeps in the wrong direction for financials, that creates a little space," said Ian Scott, an equity analyst at Manulife Asset Management.

Home Capital fell 15.5 percent to C$9.14 after it said in an earnings release late on Thursday that worries about its future funding capabilities had cast "significant doubt" on its ability to continue as a going concern. company Badger Daylighting Ltd BAD.TO ended down 14.3 percent at C$26.20 after reporting earnings that missed expectations and prompted short-seller Marc Cohodes to speak out against the stock.

"When a stock has had the run that Badger's had, it's been doing pretty well, it's vulnerable and people will shoot first and ask questions later," Manulife's Scott says, adding that his team had lightened up on its position in the name.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 12.67 points, or 0.08 percent, at 15,537.88. It lost 0.3 percent over the week.

Hudson's Bay Co HBC.TO fell 4.6 percent to C$10.20 after the retailer reported disappointing quarterly same-store sales figures. whole department store space seems to be struggling to deal with the shift to an Amazon (NASDAQ:AMZN) reality," Scott said, in reference to a broad move toward more online shopping. materials group, which includes precious and base metals miners and fertilizer companies, added 1 percent as higher metal prices broadly supported miners.

Diversified miner Teck Resources TECKb.TO rose 1.9 percent to C$25.26 after agreeing to sell its stake in a British Columbia dam and related assets for C$1.2 billion ($875 million). gambling company Amaya AYA.TO rose 3.3 percent to C$26.51 after beating profit expectations. = 1.3716 Canadian dollars)

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