TSX extends pull back from record high to hit a 10-day low

Thu Feb 23, 2017 5:16pm EST
 
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index fell to a 10-day low on Thursday as financial and industrial shares pared recent gains, while the materials group lost ground as base metal prices slumped.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 49.02 points, or 0.31 percent, at 15,781.20, its lowest close since Feb. 13.

Still, it has rallied 3.2 percent this year after climbing 17.5 percent in 2016 and on Tuesday reached an all-time high at 15,943.09.

"The market still has a good tone but sometimes the market will 'back and fill'," said Irwin Michael, portfolio manager at ABC Funds.

"A lot of these stocks have run up tremendously over the last few months."

The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.1 percent, with Potash Corporation of Saskatchewan Inc (POT.TO: Quote) falling more than 3 percent to C$23.69 and copper producer First Quantum Minerals Ltd (FM.TO: Quote) tumbling 6.5 percent to C$14.23.

Copper prices CMCU3 declined 3.0 percent to $5,858.85 a tonne as investors worried that demand could slow from China should its government take steps that cool the country's property market.

In contrast, gold futures GCc1 rose 1.4 percent to $1,249.7 an ounce after Federal Reserve minutes on Wednesday dampened expectations for an interest rate hike in March.   Continued...

 
Passersby watch the performance of stocks on a financial news television screen in the business district of Toronto, Canada, January 30, 2017. REUTERS/Chris Helgren