TSX retreats as banks, tech stocks weigh

Mon Jun 12, 2017 5:06pm EDT
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By Fergal Smith

OTTAWA (Reuters) - Canada's main stock index ended lower on Monday, weighed down by losses for heavyweight banking stocks after two days of strong gains, and as the country's technology sector tracked the larger U.S. tech group down.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 89.41 points, or 0.58 percent, at 15,383.80. Seven of its 10 main sectors fell.

Investor enthusiasm for equity markets has been dampened by stretched valuations, said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates.

"The assumptions have been that politics and interest rates wouldn't matter that much ... I think some of those assessments are coming out of the market."

The Federal Reserve is expected on Wednesday to raise interest rates for the third time since December, while comments by a senior Bank of Canada official raised the prospect that the central bank could hike rates sooner than investors had anticipated.

The tech sector .SPTTTK lost 2 percent as CGI Group (GIBa.TO: Quote) lost 1.5 percent to C$66.15 and BlackBerry Ltd (BB.TO: Quote) tumbled nearly 5 percent to C$14.11.

The financials group, which accounts for one third of the TSX's weight, declined 0.7 percent. Royal Bank of Canada (RY.TO: Quote) fell 1.1 percent to C$94.26.

The energy sector was little changed as oil prices broke a three-day losing streak despite rising U.S. drilling. [O/R]   Continued...

FILE PHOTO - A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, Ontario, Canada on June 23, 2014.  REUTERS/Mark Blinch/File Photo