Hard-hit miners, railways push TSX lower

Tue Aug 18, 2015 5:11pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index fell on Tuesday, its seventh decline in the last nine sessions, with miners and railways leading a broad retreat as copper hit a six-year low and Chinese equities tumbled.

First Quantum Minerals Ltd (FM.TO: Quote) plunged 9.7 percent to C$7.65 and Teck Resources Ltd TCKb.TO shed 8 percent to C$8.39.

"The rally that we saw in late July has pretty much been snuffed out," said Elvis Picardo, a strategist at Global Securities in Vancouver. "And it looks like the TSX is inexorably on track to test the 14,000 support level again."

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE lost 57.66 points, or 0.40 percent, to end at 14,193.87. Nine of its 10 main sectors fell.

Declining issues outnumbered advancers by 147 to 92, for a 1.60-to-1 ratio on the downside, while the index posted three new 52-week highs and 21 new 52-week lows.

Telecoms were the only group to gain, which Picardo ascribed to investors seeking out their attractive yields while worrying about the sustainability of energy sector dividends.

Other influential decliners included pipeline operator Enbridge Inc (ENB.TO: Quote), which fell 1.2 percent to C$55.22, and Barrick Gold Corp (ABX.TO: Quote), which sank 3.2 percent to C$8.39.

Canadian National Railway Co (CNR.TO: Quote) slipped 0.8 percent to C$79.51 and Canadian Pacific Railway Ltd (CP.TO: Quote) lost 1.5 percent to C$202.68, emblematic of concerns about Canada's economic health.   Continued...

A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. REUTERS/Mark Blinch