TSX Closes Down 8 Pts After First Losing Early Gains And Then Dropping 30 Pts Lower; lululemon, Rona In The News
Canada's main stock market, the Toronto Stock Exchange lost early gains that saw it up 45 points inside the opening hour but then succumb to selling pressure around midday that led it go 30 points lower mid-afternoon.
Still, after a few failed brave bids at getting back to par - helped by some buying of gold stocks on a higher bullion price and some buying of most actively traded Bombardier (BBD-B.TO) - the index finally succeeded in making back most of its losses and ended the session just eight points lower.
Cyprus weighed on sentiment all day. And afternoon news that lawmakers there had rejected a bank tax appears to have left the nation without a bailout plan. Events there have raised concerns about the economic outlook not only for Cyprus, but for the whole of Europe.
Lululemon (LLL.TO) was the big story of the day, falling 2.6% to $65.74 but closing more than $2 above day lows after recalling some products and saying it expected this move to have a "significant" impact on earnings. But Credit Suisse said "1Q Comps [comparable sales] Held Back By Black Luon Recall; No Change To Long-Term Thesis." It kept a Neutral rating and US$79 target.
Rona Inc. (RON.TO) was also in the news - gaining 4% - with Canada's largest home-improvement retailer naming Robert Sawyer president and chief executive officer. Sawyer was an executive at grocery store chain Metro Inc. (MRU.TO.
MarketWatch reported: "Gold futures climbed Tuesday to tally a fourth straight session gain as uncertainty surrounding a proposed tax on Cyprus bank deposits as part of a bailout plan continued to brighten the metal's investment appeal." It said: "April gold added $6.70, or 0.4%, to settle at $1,611.30 an ounce on the Comex division of the New York Mercantile Exchange. That was the highest close for a most-active contract since Feb. 26, according to FactSet data."
MarketWatch also reported: "Oil futures settled below $93 a barrel Tuesday for their first loss in four sessions. Traders monitored developments in Cyprus for hints on the prospects for energy demand in the euro zone." It said: "April crude dropped $1.58, or 1.7%, to settle at $92.16 a barrel on the New York Mercantile Exchange."
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