CANADA STOCKS-TSX falls as technology, gold mining shares retreat

(Adds portfolio manager quotes and details throughout; updates

* TSX ends down 34.8 points, or 0.23 percent, at 15,281.22

* Seven of the TSX’s 10 main groups end lower

* Technology group declines 2.4 percent

By Fergal Smith

TORONTO, June 27 (Reuters) – Canada’s benchmark stock index
fell on Tuesday as technology and gold mining shares retreated,
offsetting gains in the energy sector as oil prices climbed.

The Toronto Stock Exchange’s S&P/TSX composite index
closed down 34.8 points, or 0.23 percent, at

“We are down a minor amount,” said Ian Nakamoto, equity
specialist at MacDougall, MacDougall & MacTier, a division of
Raymond James. “Canada has lagged the U.S. by so much. There has
to be a point in time … where it is due for a catch-up.”

The TSX is flat since the beginning of the year, while the
S&P 500 has gained more than 8 percent.

But stocks on Wall Street fell broadly on Tuesday after a
delay in a healthcare bill vote in the U.S. Senate raised fresh
questions about the timeline of President Donald Trump’s
domestic agenda and as technology stocks lost ground under
pressure from lofty valuations.

The lightly weighted technology group on the TSX retreated
2.4 percent. Constellation Software Inc declined 2.4
percent to C$695.24 and Shopify Inc fell 6.4 percent
to C$114.37.

The materials group, including miners, lumber and fertilizer
companies, lost 1.3 percent, with Agnico Eagle Mines Ltd
sliding 3.1 percent to C$60.65 even as gold rose
after hitting a six-week low in the previous session.

Magna was also influential on the downside, falling
2.8 percent to C$58.87. The overall consumer discretionary
group, which includes the auto parts supplier, lost 1.3 percent.

Just three of the index’s 10 main groups ended higher.
Energy stocks led with a 0.7 percent rise as oil prices climbed.

U.S. crude oil futures settled 86 cents higher at
$44.24 a barrel. Cenovus Energy rose 4.4 percent to

“There’s got to be a bottom in terms of oil prices and oil
equities. They’ve come down a lot,” Nakamoto said.

The group has fallen nearly 22 percent this year.

The heavily weighted financials group edged 0.1 percent
higher, helped by modest advances for some of Canada’s largest

Recent flattening in Canadian and U.S. yield curves had left
investors worried that banks’ net interest margins could be
squeezed. But yield curves steepened on Tuesday after European
Central Bank President Mario Draghi fueled expectations that the
ECB was closer to announcing a reduction of stimulus.
(Reporting by Solarina Ho; Editing by Jonathan Oatis and
Richard Chang)

Leave a Reply

Your email address will not be published.