TORONTO (Reuters) - Canada’s main stock index slipped on Monday after Greek voters rejected debt bailout terms, endangering the country’s future in the euro zone and pummeling oil prices.
Still, while global markets stumbled on the news, the drama received a muted reaction from Canadian investors.
“I actually think the day was pretty good all things considered,” said John Stephenson, president of Stephenson & Company Capital Management.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended down 88.82 points, or 0.60 percent, at 14,593.57. At one point it fell as low as 14,524.64.
Energy stocks - which make up one-fifth of the index - took the brunt of the losses, down 2.1 percent. Crude prices crashed as much as 8 percent on a combination of concerns over Greece, China’s stock market woes, and a possible Iran nuclear deal that could bring more supply to market. [O/R]
Eight of the index’s 10 main groups finished in negative territory, with consumer discretionary and materials names bucking the broader trend.
Stephenson said the index could fall between 2 and 3 percent in the next month as a range of issues remain unresolved, including Greece and how the Bank of Canada will react to recent domestic data.
“Volatility can be to the upside but I think it will probably be slightly to the downside this month because the constellation of news out there and the possible outcomes are probably more negative than positive,” he said.
Tempering losses was a 0.5 percent rise in materials stocks, home to mining companies. The sector’s gold miners were boosted by rising bullion prices but its base metal producers fell. [GOL/][MET/L]
Declining issues outnumbered advancers at a 1.78-to-1 ratio, with the index posting four new 52-week highs and 13 new lows.
Additional reporting by Solarina Ho; Editing by Peter Galloway and Andrew Hay