(Adds equity analyst comment, details, updates prices to close)
* TSX ends down 75.24 points, or 0.50 percent, at 15,077.88
* Nine of the TSX’s 10 main groups move lower
By Alastair Sharp
TORONTO, July 6 (Reuters) – Canada’s benchmark stock index
fell on Thursday in a broad retreat, with Tahoe Resources Inc
plunging after its license to operate in Guatemala was
suspended and Toronto housing data weighing on the financial
Tahoe’s Canada-listed shares ended down 33.2 percent at
C$7.19 as the company said the suspension of operations at its
flagship Escobal silver mine meant it could no longer confirm
its previously issued 2017 outlook. Several banks cut their
target prices and recommendations on the stock.
It is not clear how long the mine will be closed, as the
company takes legal steps to have the license reinstated while
the case is heard.
“If it’s shut down for three months, then 30 percent is
probably a bit of an overreaction,” said Ian Scott, an equity
analyst at Manulife Asset Management. “If you’re down for a year
or longer, then maybe it’s a bit more onside.”
Scott said that lingering housing concerns weighed on
banking stocks that should have otherwise benefited more from a
broad rise on global bond yields.
Home sales in the red-hot Toronto market fell for the third
consecutive month in June, while more owners put their
properties up for sale as they worried a rapid acceleration in
prices had peaked, data showed.
“As long as those housing concerns still linger and as long
as oil isn’t acting properly, you could see the TSX trading
lower,” Scott said.
Energy stocks ended off 0.7 percent, as an oil rally faded
despite a sharper-than-expected decline in U.S. crude oil and
The Toronto Stock Exchange’s S&P/TSX composite index
ended down 75.24 points, or 0.50 percent, at
15,077.88, its fourth down day in five.
Nine of its 10 main sectors fell, with telecoms notching a
slight gain. Decliners outnumbered advancers by almost 4-to-1
Air Canada jumped 10.7 percent to C$19.20 after the
airline said it expected its earnings before interest, taxes,
depreciation, amortization, impairment and aircraft rent to
“significantly exceed” analysts’ expectations.
Smaller rival Westjet Airlines Ltd added 3.1
percent to C$24.27.
Alternative lender Home Capital Group Inc fell 5.9
percent to C$15.89 and rival Street Capital Group Inc
lost 9.8 percent to C$1.20 after a financial regulator said it
planned to clamp down on risky lending, six months after a
Reuters investigation revealed that regulated mortgage providers
were teaming up with unregulated rivals to circumvent rules
limiting how much they can lend against a property.
(Reporting by Alastair Sharp; Editing by Peter Cooney)