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CANADA STOCKS-TSX slips as financials outweigh gold miner bounce

Published 2017-08-09, 11:14 a/m
CANADA STOCKS-TSX slips as financials outweigh gold miner bounce

* TSX down 26.64 points, or 0.17 percent, to 15,229.71

* Gold sub-index jumps, financials weigh

* Decliners outnumbered advancers by 1.40-to-1 ratio

TORONTO, Aug 9 (Reuters) - Canada's main stock index slipped in morning trade on Wednesday, as losses among financial shares offset a rally in gold miners as investors sought safety in the precious metal amid rising geopolitical tensions.

A sub-index of global gold miners that is dominated by Canada-listed stocks .SPTTGD jumped 2 percent as escalating tensions between the United States and North Korea pushed up gold prices and weighed on global stock markets.

Earnings hits and misses also had a strong influence on the Canadian market, with a string of companies swinging in both directions.

Supply chain software company Kinaxis Inc KXS.TO fell 12.9 percent to C$69.43 as several analysts cut their target prices and recommendations on the stock.

Semafo SMF.TO jumped 10.3 percent to C$2.99 after Credit Suisse (SIX:CSGN) raised its recommendation on the gold miner to "outperform" from "neutral" following its second-quarter results, and Finning International Inc FTT.TO rose 6.9 percent to C$27.63 after the heavy equipment company reported quarterly earnings that beat expectations and raised its dividend.

Gold royalty and streaming company Franco Nevada Corp FNV.TO jumped 4.6 percent to C$96.27 after reporting quarterly results late on Tuesday.

At 10:51 a.m. ET (1451 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 26.64 points, or 0.17 percent, to 15,229.71.

Decliners outnumbered advancers by a 1.40-to-1 ratio.

The heavyweight financials sector, which accounts for more than a third of the index's weight, was down 0.25 percent as U.S. and Canadian bond yields fell.

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U.S. President Donald Trump's boasted about the strength of the country's nuclear arsenal on Wednesday, after North Korea said it was "carefully examining" a plan to strike Guam, a U.S. territory in the Pacific that is home to a U.S. military base. Pharmaceuticals International Inc VRX.TO lost 4.0 percent to C$18.96 after the company said its subsidiaries in Australia were the subject of a tax audit.

Canada-listed shares of Tahoe Resources Inc THO.TO fell 1.8 percent to C$6.48 after the miner said it would stop paying dividends and suspended overall guidance amid uncertainty about its operations in Guatemala.

Stella-Jones Inc SJ.TO rose 7.2 percent to C$46 after the wood products producer reported better-than-expected quarterly earnings and revenue.

Canadian housing starts rose in July on growth in western British Columbia, even as groundbreaking on single-detached homes fell in Toronto where activity has cooled after the province introduced measures to rein in a frothy market.

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