TORONTO: Canada's main stock index fell 1 percent on Thursday, hitting a three-week low as a string of disappointing corporate earnings reports added to broad investor unease about the global economy.
The most influential weight on the index was Manulife Financial Corp, which slumped 7.3 percent to C$16.05 after the country's largest insurer missed market estimates for the fourth quarter and said it would be difficult to achieve its core earnings target for 2016.
The heavyweight financials group fell 1.9 percent to its lowest level in more than two years, with Royal Bank of Canada down 1.7 percent to C$65.08 and Toronto-Dominion Bank off 1.7 percent at C$48.86.
Telus Corp declined 3.4 percent to C$38.49 after the telecom company reported a fall in quarterly profit, hurt by increased competition and weaker demand for its wireless services, which the company blamed in part on broader economic weakness, particularly in Alberta.
Teck Resources Ltd, North America's largest producer of steel-making coal, declined 5.2 percent to C$5.16. Cost-cutting helped the diversified miner report a surprise adjusted profit but it also recorded an impairment charge as it slashed its workforce.
At 10:13 a.m. EST (1513 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 112.43 points, or 0.92 percent, at 12,073.29.
It fell as low as 12,005.81 at one point, its weakest level since Jan. 21.
Investors have been spooked by worries about the global economy, and were in no mood to buy into companies that produced positive earnings surprises.
The country's second-largest pipeline company, TransCanada Corp, barely advanced despite reporting a better-than-expected quarterly profit and raising its dividend at a time when most energy companies are scaling back shareholder payouts.
Nine of the index's 10 main groups were in negative territory, with five decliners for every two advancers.
The materials group, which includes precious and base metals miners and fertilizer companies, added 2.1 percent.
Gold miners benefited as the price of bullion jumped nearly 4 percent to its highest in a year as fears about financial instability, a lower dollar and U.S. Treasury yields persuaded investors to seek refuge in the precious metal.
Barrick Gold Corp jumped 6.2 percent to C$17.10 and Goldcorp Inc rose 4.4 percent to C$21.20.
Kinross Gold Corp surged 14.8 percent to C$4.11 after forecasting record output and lower costs this year.
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