TSX rally ends as energy stocks slip

Fri Oct 9, 2015 4:50pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - A five-day winning streak for Canada's main stock index ended on Friday, but only just, as energy shares pulled back from a recent rally while mining stocks pushed higher on rising bullion prices.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE fell 14.30 points, or 0.10 percent, at 13,964.36, with advancers and decliners almost evenly split.

Investors pushed the index up almost 5 percent this week, largely on the back of gains in the heavyweight energy sector, as appetite for riskier assets pushed commodities prices higher.

That sentiment was helped by minutes from the U.S. Federal Reserve's September meeting that showed it was in no hurry to hike interest rates, which pushed gold to a seven-week high.

Gold miners were among the index's top performers, with Goldcorp Inc (G.TO: Quote) rising 6.1 percent to C$18.75 and Barrick Gold Corp (ABX.TO: Quote) up 5.5 percent to C$9.84.

The weekly gains was the biggest so far this year, and put the index at its highest level since August.

"We've had a decent period of consolidation. This correction that we've seen has let off some of the steam in the markets," said Philip Petursson, managing director for capital markets and strategy at Manulife Asset Management.

"Now we can re-evaluate on somewhat better valuations, more realistic earnings expectations, and a more favorable outlook over the next 12 months," he said.   Continued...

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