TSX falls most in months on broad weakness

Fri Sep 19, 2014 5:02pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index took its sharpest one-day hit in seven months on Friday as a broad array of stocks from banks to telecommunications and resource companies pushed it to a 1.7 percent decline for the week.

All 10 of the main sectors ended in the red, with heavyweight financial, energy and materials stocks doing the most damage.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE has hit record highs this year but started to stumble earlier in September as commodity prices come under pressure.

"It could definitely be general market fatigue" among investors, said Kevin Headland, a director in the portfolio advisory group at Manulife Asset Management. "It could very well be opportunistic profit-taking."

The index dropped 200.19 points, or 1.29 percent, to end the day at 15,265.35. The index recorded a 1.7 percent decline for the week.

"A market that starts to sell off can often be self-fulfilling as it hits other people's stop-loss trades and continues downward," Headland said.

Suncor Energy Inc (SU.TO: Quote) lost 2.5 percent to C$41.99, and Encana Corp (ECA.TO: Quote) declined 2.5 percent to C$23.79.

"Energy has been the big drag this week, tied in to the decline in the price of oil we've seen," said Rick Hutcheon, president and chief operating officer at RKH Investments.   Continued...

 
A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007.   REUTERS/Mark Blinch