Canadian stocks snapped a four-day winning streak to settle lower Wednesday, led mostly by gold stocks as commodity prices dropped. The Bank of Canada left its key rates unchanged, while investors largely ignored the vote by U.S. lawmakers to extend the deadline for automatic spending cuts to come into force in the country until mid-May. The measure extends the U.S. government’s $16.4 trillion debt limit until May 16.The Bank of Canada left its key rates unchanged at 1 percent as widely expected, while indicating the slowdown in the second half of 2012 as more pronounced than the central bank had anticipated, owing to weaker business investment and exports.
The S&P/TSX Composite Index closed Wednesday at 12,794.05, down 30.58 points or 0.24 percent. The index touched an intraday high of 12,828.93 and a low of 12,792.07. The Index had gained over 200 points or nearly 2 percent in the past four sessions.
The Global Gold Index shed 2.04 percent, with gold futures for February delivery slipping $6.50 or 0.4 percent to close at $1,686.70 an ounce Wednesday on the Nymex.
The Capped Materials Index dropped 1.21 percent, even as Potash Corporation of Saskatchewan Inc. (POT.TO) gained 1.13 percent.
Among gold stocks, Barrick Gold Corp. (ABX.TO) was down 1.33 percent, while Kinross Gold Corp. (K.TO) lost 3.27 percent. Yamana Gold Inc. (YRI.TO) shed 2.06 percent, while Goldcorp. Inc. (G.TO) dropped 2.13 percent.
Iamgold Corp. (IMG.TO) plunged 14.55 percent after providing mineral resource update for Côté Gold, reporting the strongest quarter for production in 2012, but indicating a soft production guidance for 2013.
The Diversified Metals & Mining Index shed 0.39 percent, with Teck Resources Limited (TCK.B.TO) edging up 0.03 percent and Lundin Mining Corp. (LUN.TO) up 0.96 percent.
First Quantum Minerals Ltd. (FM.TO) shed 1.77 percent. The company had made an hostile bid to acquire Inmet Mining Corp. (IMN.TO). Inmet Mining slipped 0.73 percent.
The Energy Index dipped 0.02 percent, with U.S. crude oil futures for March delivery down $1.45 or 1.5 percent, to close at $95.23 a barrel Wednesday on the Nymex.
Among energy stocks, Suncor Energy Inc. (SU.TO) dropped 0.53 percent, while Encana Corp. (ECA.TO) gained 0.89 percent. Canadian Natural Resources Limited (CNQ.TO) shed 0.03 percent.
The Financial Index slipped 0.19 percent, with TD Bank Group (TD.TO) down 0.38 percent, the Bank of Nova Scotia (BNS.TO) down 0.31 percent, and Bank of Montreal (BMO.TO) was up 0.14 percent. Royal Bank of Canada (RY.TO) was down 0.52 percent.
The Capped Industrials Index ended flat with transportation systems maker Bombardier Inc. (BBD.A.TO, BBD.B.TO) shedding 0.96 percent and Canadian Pacific Railway (CP.TO) up 0.81 percent.
The Information technology Index lost 0.50 percent, with Blackberry maker Research In Motion (RIM.TO) down 2.48 percent.
Aurizon Mines ( ARZ.TO) gained 0.42 percent after unanimously urging shareholders to reject the hostile take-over bid from Alamos Gold Inc. (AGI.TO). Alamos proposes to acquire all of the outstanding common shares of Aurizon for C$4.65 per share. Shares of Alamos Gold gained 0.63 percent.
Chile focused copper miner Celestica Inc. (CLS.TO) slipped 3.97 percent after reporting lower fourth-quarter net earnings of $7.2 million or $0.04 per share compared to $69.2 million or $0.32 per share last year. Adjusted earnings for the quarter dropped to $50.3 million or $0.25 per share from $71.1 million or $0.33 per share last year. Analysts expected earnings of $0.19 per share for the quarter.
Food retailer Metro Inc. (MRU.TO) moved up 3.33 percent after indicating an agreement to sell a portion of its stake in convenience store operator Alimentation Couche-Tard Inc. (ATD_B.TO) for gross proceeds of C$479 million.
In economic news from Europe, Bank of England policymakers voted 8-1 to maintain the size of quantitative easing at GBP 375 billion, the minutes of the meeting showed Wednesday. David Miles sought an increase of GBP 25 billion to GBP 400 billion. The Monetary Policy Committee unanimously decided to retain the record low 0.50 percent interest rate.
Government debt in the eurozone stayed broadly unchanged in the third quarter, data from Eurostat showed Wednesday. Total public debt in the single-currency bloc came in at 90 percent of gross domestic product at the end of the third quarter, little changed from 89.9 percent recorded in the second quarter. This was, however, higher than the 86.8 percent recorded in the third quarter of 2011.
Elsewhere, the number of persons claiming jobless benefits in the UK declined unexpectedly in December, the latest figures from the Office for National Statistics showed The number of jobless claims or the claimant count declined by 12,100 from a month earlier to 1.56 million in December. Economists expected an increase of 500 claimants.
by RTT Staff Writer
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