TSX slips as energy, financial losses offset miner gains

Fri Dec 23, 2016 4:47pm EST
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index slipped on Friday, ending a six-day rising streak as losses among energy and financial stocks outweighed gains for gold miners.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 7.08 points, or 0.05 percent, at 15,328.15. It rose 0.5 percent on the week.

Six of its 10 main groups rose, with the heavyweight energy group down 0.7 percent and financials off 0.2 percent. Those two sectors combine to account for 57 percent of the index's weight.

Crescent Point Energy Corp (CPG.TO: Quote) fell 1.9 percent to C$18.17 and Bank of Montreal (BMO.TO: Quote) slipped 0.2 percent to C$97.17.

The Canadian economy retreated in October due to widespread weakness in the manufacturing sector and a decline in oil and gas extraction, raising the risk fourth-quarter growth could slow more than the Bank of Canada anticipates.

"There's the unexpected October contraction, which we viewed as not so unexpected," said Simon Jochlin, a portfolio analytics associate at StennerZohny Investment Partners+, part of Richardson GMP Ltd.

He said he thinks there is a 50 percent chance that the Canadian economy falls into recession in 2017, forcing the central bank to cut rates next year.

"When you do have consumers as leveraged as they are and a disproportionate allocation to real estate and indirect dependence on it for output and growth, it could very quickly impact sectors throughout," he said.   Continued...

 
A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014.   REUTERS/Mark Blinch