TSX pulls back from record high as winning streak ends
By Fergal Smith
TORONTO (Reuters) - Canada's benchmark stock index ended its winning streak on Friday, pulling back from the previous day's record high, pressured by losses for the materials group as prices of base and precious metals fell.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 25.54 points, or 0.16 percent, at 15,838.63. It was the first daily decline since Feb. 6, but the index still ended up 0.7 percent for the week.
"This is perfectly healthy," said Harrison Newlands, research associate at MacNicol & Associates Asset Management Inc.
He sees the pullback as part of a broader market rally, but said the energy sector needs to participate in further gains for the index to relieve some of the burden from the heavyweight financials group.
Energy has fallen more than 6 percent year-to-date, while financials have climbed more than 6 percent and materials nearly 14 percent.
The materials group, which includes precious and base metals miners and fertilizer companies, pulled back 1.4 percent, with First Quantum Minerals (FM.TO: Quote) slumping 5.5 percent to C$15.00 and Yamana Gold Inc (YRI.TO: Quote) plunging 10.0 percent to C$4.04 after both reported fourth-quarter results on Thursday.
Gold futures GCc1 fell 0.4 percent to $1,234.8 an ounce and copper prices CMCU3 declined 0.7 percent to $5,959.85 a tonne.
Air Canada AC.TO reported a bigger quarterly loss and said it expected its margins to halve in the current quarter from a year ago, as fuel costs inch up with the rise in oil prices. Its shares tumbled 8.5 percent to C$13.18. Continued...