TSX falls as crude oil, global worries weigh

Wed Sep 23, 2015 4:54pm 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 Wednesday, following hefty losses in the previous session, as tumbling crude prices and weak manufacturing data out of China and the United States hurt the resource-rich index in low-volume trade.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE fell 107.40 points, or 0.80 percent, to end the session at 13,383.69.

Eight of its 10 main sectors fell, with the energy group giving up 2.2 percent and both industrials and materials down more than 1 percent.

The reports showed U.S. manufacturing growth stuck at a two-year low in September and Chinese factory activity shrinking to a 6-1/2 year low.

"What we're realizing here, as investors, is that the fundamental backdrop is not as rosy as believed, and it certainly doesn't justify the valuations we had," said John Johnston, chief strategy officer at Davis-Rea.

Among the heaviest weights were fertilizer company Potash Corp (POT.TO: Quote), which fell 4.8 percent to C$27.93, and Canadian National Railway Co CNR.TO, down 1.7 percent at C$73.39.

Johnston said he feared emerging markets would continue to struggle, perhaps leading to a global recession next year that would keep commodity prices low.

"I think Canada is very vulnerable," he said. "Our concentration in the commodity sector is a risk."   Continued...

 
A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch