TSX declines despite rebound in resource shares
TORONTO (Reuters) - Canada's main stock index fell on Tuesday despite a bounce back in resource stocks after Monday's collapse, with heavy losses recorded among industrials and telecom stocks.
A rebound in commodity prices helped drive up shares of energy and mining companies, following recent selloffs. Shares of gold miners tumbled in the previous session after the price of gold slumped to a five-year low, with Chinese sellers getting rid of the precious metal. [GOL/] Barrick Gold Corp (ABX.TO: Quote) dropped nearly 16 percent on Monday.
The gold-mining group climbed 2.3 percent on Tuesday, and the energy sector added 0.4 percent.
The choppiness in resource shares has weighed on the broader benchmark TSX index. It is down about 1 percent this year.
“The resource areas continue to trade at oversold levels,” said Youssef Zohny, portfolio manager at StennerZohny Investment Partners+ of Richardson GMP Ltd, which manages about C$28.3 billion in assets.
He said it might be an interesting time to consider looking for attractively priced resource stocks.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 49.31 points, or 0.34 percent, at 14,376.24. Seven of the 10 main sectors on the index were in the red.
Among shares of energy producers, Canadian Natural Resources Ltd (CNQ.TO: Quote) advanced 0.9 percent to C$31.76.