TSX in selloff mode as sentiment on U.S. economy sours

Tue May 5, 2015 5:20pm EDT
 
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By Solarina Ho

TORONTO (Reuters) - Canada's main stock index tracked world equity markets lower on Tuesday as investors, concerned about U.S. growth prospects, shrugged off higher crude prices and pushed the index to its biggest one-day drop in two months.

Energy stocks fell despite crude prices that hit their highest levels of 2015, and the oil and gas sector was one of the index's biggest losers, retreating 1.3 percent.

In the group, Suncor Energy Inc (SU.TO: Quote) lost 1.9 percent to C$38.33. Pipeline company TransCanada Corp (TRP.TO: Quote) shed 2.2 percent to finish at C$55.34.

Investors may have been positioning ahead of election results later on Tuesday in the oil-rich province of Alberta, where the left-wing New Democrats were in a position to win. Analysts have said that could have a negative impact on oil shares.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE fell 193.53 points, or 1.26 percent, to 15,173.94. The index is still up some 3.7 percent this year.

All 10 of the index's main sectors were in the red. Declining issues outnumbered advancing ones by 197 to 44, for a 4.48-to-1 ratio on the downside.

"The market's been very volatile this year ... which means there's some kind of downside coming up," said Marcus Xu, president and director of portfolio manager M.Y. Capital Management Corp in Vancouver.

"Investors need to watch out for a bigger pullback this year at some point. Maybe in the magnitude of close to 10 percent."   Continued...

 
A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. REUTERS/Mark Blinch