TSX posts lowest close in 3 weeks as gold shares fall

Mon Feb 27, 2017 6:03pm EST
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index posted its lowest close in three weeks on Monday, falling for the fourth straight session as gold stocks declined sharply, while the heavyweight financial services group also lost ground.

The losing streak for the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE follows a record high last week at 15,943.09. The index has rallied 5.5 percent since the U.S. presidential election in November, helped by prospects of U.S. economic stimulus.

"I am getting a sense of fatigue in the market place after that strong run up, particularly for a risk-on play like Canada," said Candice Bangsund, vice president and portfolio manager at Fiera Capital Corporation.

Three-quarters of the weight of the TSX is made up of the financial, industrial, energy and materials groups, many of whose shares are seen as sensitive to the economic outlook, while some defensive sectors such as healthcare have a low weighting.

Investors are waiting for U.S. President Donald Trump to outline plans for tax cuts, infrastructure spending, levies on imports and foreign policy in a speech on Tuesday night.

"They are waiting for more details and it feels like they are getting a bit more impatient," Bangsund said.

The TSX closed down 69.96 points, or 0.45 percent, at 15,463.51, its lowest close since Feb. 6.

The index fell sharply at the close due to trades related to index rebalancing after the completion by Enbridge Inc (ENB.TO: Quote) of its acquisition of Spectra Energy Corp.   Continued...

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. Canada's main stock index was little changed on Monday as weakness in financial and energy shares offset gains in the materials sector.   REUTERS/Mark Blinch