CANADA STOCKS-TSX falls in broad retreat led by financials, resource stocks

(Adds details, updates prices)

* TSX down 73.95 points, or 0.49 percent, at 15,139.47

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

* Index on track for 1.4 pct fall in June, down 1.2 pct on
week

TORONTO, June 30 (Reuters) – Canada’s main stock index fell
in morning trade on Friday and was heading for a 1.4 percent
decline in June, as investors retreated from heavyweight
financial and natural resource stocks.

The most influential movers on the index were its biggest
banks and insurers, with Royal Bank of Canada down 0.6
percent to C$94.09 and Manulife Financial Corp off 1.1
percent to C$24.22.

The financials group, which accounts for one third of the
index’s weight, lost 0.6 percent.

Exploration stage uranium company Nexgen Energy Ltd
advanced 7.6 percent to C$2.84 after saying it had secured $110
million in financing.

But larger uranium producer Cameco Corp fell 4.7
percent to C$11.69. Bank of America analysts wrote in a note
that oversupply in the uranium market would likely weigh on
Cameco’s stock for several years.

The broader energy group retreated 0.5 percent, with
Canadian Natural Resources Ltd falling 0.8 percent to
C$37.79 and Encana Corp down 1.6 percent to C$11.21.

At 10:08 a.m. ET (1408 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index was down 73.95 points, or 0.49
percent, at 15,139.47.

The index is set to notch a 1.4 percent fall in June, and a
1.2 percent decline on the week.

Industrials fell 0.4 percent while the materials group,
which includes precious and base metals miners and fertilizer
companies, lost 0.6 percent.

All 10 of the index’s 10 main groups were in negative
territory, with three declining stocks for every gainer.

The Canadian stock market will be closed on Monday for
Canada Day.

Canada’s economy grew by 0.2 percent in April on widespread
strength, Statistics Canada said on Friday, indicating a solid
start to the second quarter as the Bank of Canada mulls a hike
in interest rates next month.

The increase – which matched the forecast of analysts in a
Reuters poll – marked the sixth consecutive month of growth
after a long slump caused when oil prices crashed in
2014.

(Reporting by Alastair Sharp; Editing by Nick Zieminski)


Leave a Reply