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CANADA STOCKS-Earnings disappointment, Roots debut dampen TSX

Published 2017-10-25, 05:02 p/m
© Reuters.  CANADA STOCKS-Earnings disappointment, Roots debut dampen TSX
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* TSX down 50.37 points, or 0.32 percent, to 15,854.77

* Seven of TSX's 10 main industry groups end lower

By Solarina Ho

TORONTO, Oct 25 (Reuters) - Canada's benchmark stock index lost ground on Wednesday as disappointing quarterly results and apparel company Roots Corp's ROOT.TO dismal trading debut helped set the tone for the broader market.

Canadian National Railway Co CNR.TO gave up all of the previous session's pre-earnings gains after it posted results that missed expectations. Canada's largest rail operator fell 1.1 percent to finish at C$104.26.

Air Canada AC.TO , after opening higher following quarterly results that came in better than expected, ended 1.3 percent lower to C$26 as investors booked profits.

Industrial stocks as a whole fell 0.7 percent.

Roots' trading debut received a cool reception from investors wary about the uncertain retail industry. The stock tumbled 16.7 percent to C$10. Toronto Stock Exchange's S&P/TSX composite index .GSPTSE fell 50.37 points, or 0.32 percent, to finish at 15,854.77.

Of the index's 10 main groups, seven sectors lost ground.

"The TSX it came within 50 points of an all-time high yesterday, but today there's been a little bit of a retreat," said Elvis Picardo, portfolio manager at HollisWealth in Vancouver.

"The markets are taking its cue from the U.S., where sentiment is being very much earnings driven. On the TSX specifically, the fact that Roots has had a lukewarm IPO hasn't really helped sentiment."

U.S. stocks slumped on Wednesday, with the Dow Industrials and S&P 500 suffering their worst day in seven weeks. .N

Enbridge Inc ENB.TO gave up 1.4 percent to end at C$48.63, as Credit Suisse (SIX:CSGN) cut its price target, while TransCanada Corp TRP.TO fell 1.9 percent to C$59.72. The company said earlier on Wednesday it was selling its Ontario solar assets for C$540 million. energy stocks see-sawed 0.1 percent lower alongside marginally cooler oil prices. heavily-weighted financial services sector fell 0.4 percent with Fairfax Financial Holdings Ltd FFH.TO sliding 2.3 percent to C$640.

Materials lost 0.3 percent, with Eldorado Gold ELD.TO slumping 11.6 percent to C$1.67. The miner extended this week's sharp plunge after reporting lower gold recoveries at its Kisladag mine.

On the upside, telecoms gained 1.0 percent with Telus Corp T.TO rising 3.0 percent to C$47.10.

On the economic front, the Bank of Canada held interest rates steady, as expected, and expressed caution as it considers future moves given the risks and uncertainties facing the economy. ECONCA issues outnumbered advancing ones on the TSX by 139 to 104, for a 1.34-to-1 ratio on the downside.

Seventeen companies hit 52-week highs on the index, while eight touched new lows.

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