TSX slips to six-month low as resource stocks slide

Thu Jun 15, 2017 4:53pm EDT
 
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index fell to a six-month low on Thursday, tracking global markets that declined on concerns over the pace of economic growth, while the energy and materials groups were squeezed by lower prices for oil and gold.

The Toronto Stock Exchange's S&P/TSX composite index fell 9.71 points, or 0.06 percent, to 15,160.42, its lowest close since Dec. 6.

The index has lost ground each day this week, and it closed on Thursday below its 200-day moving average for a second straight day.

"It's pretty defensive ... the loss of momentum in tech has a lot of people rattled," said Ian Scott, equity analyst at Manulife Asset Management.

Wall Street also closed lower as a recent selloff in technology stocks deepened.

Canada's technology group pared recent losses to end 0.2 percent higher. But it accounts for just 2.5 percent of the TSX's weight, much less than resource stocks.

The energy group retreated 1.7 percent as oil prices fell to a six-month low. The commodity was pressured by high global inventories and doubts over OPEC's ability to implement production cuts as promised.

U.S. crude prices settled 27 cents lower at $44.46 a barrel.   Continued...

 
A sign board displaying Toronto Stock Exchange (TSX) stock information is seen 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