CANADA STOCKS-TSX falls as Tahoe plunges on mine suspension; Air Canada jumps

(Adds details on specific stocks, updates prices)

* TSX down 74.75 points, or 0.49 percent, at 15,078.37

* Nine of the TSX’s 10 main groups move lower

TORONTO, July 6 (Reuters) – Canada’s main stock index fell
on Thursday, with Tahoe Resources Inc plunging
after its license to operate in Guatemala was suspended, while
Air Canada bounced after it said a key earnings metric
would exceed analysts’ expectations.

Tahoe’s Canada-listed shares fell 28.4 percent to C$7.70 as
the company said the suspension of operations at its 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.

Air Canada rose 7.8 percent to C$18.70 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 2.4
percent to C$24.10.

At 10:30 a.m. ET (1430 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index was down 74.75 points, or 0.49
percent, at 15,078.37.

Nine of its 10 main sectors were lower, with telecoms
notching a slight gain. Decliners outnumbered advancers by
almost 3-to-1 overall.

Alternative lender Equitable Group Inc fell 1
percent to C$58.58 after the country’s main financial regulator
said it planned to ban some bundled residential mortgages 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.

Intact Financial Corp lost 1.6 percent to C$96.60.
The property and casualty insurer issued estimates of its
catastrophe loss payouts due to severe storms and flooding in
Ontario and Quebec that were higher than a National Bank
Financial analyst had expected.

The materials group, which includes precious and base metal
miners and fertilizer companies, lost 1.2 percent. Barrick Gold
Corp fell 2.2 percent to C$20.22, as gold steadied the
day after it hit a two-month low.

Energy stocks were off 0.2 percent overall.

Oil rose on Thursday, recovering some ground after a
surprisingly upbeat picture of U.S. demand halted the previous
day’s slide, although the prospect of oversupply in 2018
prompted yet more analysts to cut their price forecasts.

Canada’s trade deficit almost doubled to C$1.09 billion
($845 million) in May, but in a sign of economic strength, both
exports and imports reached record highs, Statistics Canada data
indicated on Thursday.
(Reporting by Alastair Sharp; Editing by Lisa Von Ahn)


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