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CANADA STOCKS-TSX lower as investors focus on end to ECB rate cuts

Published 2016-03-10, 04:41 p/m
© Reuters.  CANADA STOCKS-TSX lower as investors focus on end to ECB rate cuts
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(Adds portfolio manager comment, details, updates prices)
* TSX ends down 13.76 points, or 0.10 percent, at 13,379.14
* Nine of the TSX's 10 main groups fall

By Alastair Sharp
TORONTO, March 10 (Reuters) - Canada's main stock index fell
in volatile trade on Thursday, just its second slip in 11
sessions, as investors looked past the European Central Bank's
rate cuts and expansion of stimulus to focus on signals that
there would be no further cuts.
The broad decline - nine of the index's 10 main groups were
lower - was offset by a 2.9 percent jump in materials stocks led
by major gold producers as bullion prices gained. GOL/
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended down 13.76 points, or 0.10 percent, at
13,379.14.
It had jumped above 13,500 in early trade after the ECB
delved deep into its remaining arsenal of stimulus options,
cutting interest rates and expanding asset-buying.
"People were like 'wait a minute, OK this is a great
announcement but has anything changed? Not really. Let's sell
the news'," said Manash Goswami, a portfolio manager at First
Asset Investment Management, pointing to broadly negative
corporate earnings trends in both the United States and Canada.
Industrial stocks fell 1.1 percent, while consumer staples
fell 1.4 percent. That included a 14.7 percent drop in Empire Co
Ltd EMPa.TO to C$22.83 after the owner of the Sobey's grocery
chain reported earnings late on Wednesday.
The heavyweight financials group slipped 0.2 percent and
utilities stocks were off 0.5 percent.
Energy stocks fell 0.2 percent, holding on to most of their
recent gains despite a pullback in the price of crude oil. O/R
Goldcorp Inc G.TO jumped 5.7 percent to C$22.04, while
Barrick Gold Corp ABX.TO gained 4.3 percent to C$18.92.
The most influential gainers also included First Quantum
Minerals Ltd FM.TO , which rose 13.3 percent to C$7.09 after it
agreed to sell a Finnish mine for nickel, copper, gold and
platinum for $712 million.
First Asset's Goswami said there was no reason for the index
not to retest its January lows below 12,000 in the next few
weeks given rich valuations and recent limp economic data.
"It's been nice to have the rally, don't get me wrong, but I
haven't had strong conviction in it," he said.

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