TSX falls, pressured by financial and energy stocks

Mon Feb 8, 2016 5:40pm EST
 
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index fell on Monday as banking, energy and consumer stocks lost ground, offsetting gains among gold miners as global growth concerns mounted.

Declining crude oil prices for a third straight day weighed on Canada's resource-linked market, while worries over global growth and the health of the financial sector hurt sentiment after triggering a sell-off in European stocks.

Deterioration in earnings and revenue has become "more broad based," said Manash Goswami, a portfolio manager at First Asset Investment Management Inc, spreading from resource stocks to financials and technology.

Financial sector stocks tumbled 2 percent, including a 2.6 percent drop in Royal Bank of Canada (RY.TO: Quote) to C$69.29.

Brookfield Asset Management Inc (BAMa.TO: Quote) fell nearly 4 percent to C$38.50. Its bid for Australian freight giant Asciano Ltd AIO.AX has been trumped by local rival Qube Holdings Ltd (QUB.AX: Quote).

The energy group retreated 2.4 percent, including a 3.3 percent decline in Canadian Natural Resources Ltd (CNQ.TO: Quote) to C$29.22.

U.S. crude CLc1 prices settled at $29.69 a barrel, down 3.9 percent.

Valeant Pharmaceuticals International Inc (VRX.TO: Quote) fell more than 7 percent to C$124.88, while Alimentation Couche-Tard Inc (ATDb.TO: Quote) dropped 6 percent to C$54.52.   Continued...

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