TSX notches 11-day high as financials, energy climb
By Fergal Smith
TORONTO (Reuters) - Canada's benchmark stock index edged up on Monday to its highest close in 11 days as financial and energy shares climbed, while mining stocks weighed as lower Chinese economic growth targets contributed to a softening in prices for metals.
China, which is copper's biggest consumer, cut its growth target this year as the world's second-largest economy pushes through painful reforms to address a rapid build-up in debt and erects a "firewall" against financial risks. Copper prices fell to a more than one-week low.[MET/L]
"The base materials after a pretty healthy upside move are starting to digest that little change in economic projection out of China and clearly material stocks don't like the threat of a higher interest rate environment," said Matt Skipp, president of SW8 Asset Management.
Gold fell for the third straight session, pressured by comments from Federal Reserve Chair Janet Yellen that reinforced expectations of an increase in U.S. interest rates this month. [GOL/]
Losses for base metal miners came as the Prospectors and Developers Association of Canada's conference took place.
"When there are 30,000 global mining investors all in Toronto having a few cocktails and meeting with companies it basically removes the buyers from the marketplace temporarily," said Skipp.
First Quantum Minerals (FM.TO: Quote) fell 2.9 percent to C$14.82 and Teck Resources Ltd (TECKb.TO: Quote) declined 2.5 percent to C$26.63, while the materials group, which includes miners and fertilizer companies, lost 1.9 percent.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 21.25 points, or 0.14 percent, at 15,629.75, its highest close since Feb. 23. Continued...