TSX falls as resource and financial stocks lose ground

Wed May 4, 2016 5:24pm EDT
 
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index fell to a two-week low on Wednesday as resource and financial stocks lost ground, while domestic trade data disappointed and a wildfire led to production cuts in the country's oil sands region.

The index weakened for a third straight day, extending a pullback from Friday's six-month high of 13,972.62.

"We have relatively stretched valuations and I think just a lot of (investor) repositioning from the upswing we've had on the commodity side," said Ben Jang, a portfolio manager Nicola Wealth Management.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 75.68 points, or 0.55 percent, at 13,632.00. Five of the index's 10 main groups ended lower.

Still, the index has rebounded 18 percent from a nearly 3-1/2-year low in January, helped by a rebound in commodity prices.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 2.4 percent.

Barrick Gold Corp ABX.TO fell 3.6 percent to C$22.48, while First Quantum Minerals Ltd FM.TO was down 8 percent at C$9.29.

Spot gold XAU= fell 0.5 percent, retreating further from a 15-month high as the U.S. dollar rose, while copper prices CMCU3 declined 1.1 percent to $4,867.15 a tonne. [GOL/][MET/L]   Continued...

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