TSX slumps most since Sept as energy, bank stocks weigh

Fri Feb 24, 2017 5:42pm EST
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By Alastair Sharp

TORONTO (Reuters) - Canada's benchmark stock index slumped on Friday, dropping by the most in over five months in a sharp pullback from a record high set earlier in the week, as heavily-weighted energy and financial stocks led a broad-based retreat.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 247.73 points, or 1.57 percent, at 15,533.47, its sharpest one-day loss since Sept. 13.

All of the index's 10 main industry groups finished in the red, with the energy and financials groups - which account for 55 percent of the index's weight - down 3.2 percent and 1.4 percent, respectively.

Investors struggled to explain the severity of the declines, which contrasted with small gains on Wall Street, but also did not express surprise or concern. [.N]

"When you look at the run we've had, you've going to see a day like today, it's inevitable," said Allan Small, a senior investment advisor at HollisWealth Inc.

"We'll need a few days of this in a row for me to think there's been a change in the momentum," he added.

Royal Bank of Canada (RY.TO: Quote) shares dropped 1.7 percent to C$96.61 despite beating forecasts with its first quarterly earnings of more than C$3 billion.

Other heavyweight bank stocks fell by similar degrees.   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