TSX dips as energy stocks retreat ahead of OPEC meeting
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index edged lower on Monday as energy stocks retreated ahead of a meeting of oil producers later in the week, while mining stocks and financials also fell in a low-volume session with U.S. markets closed for Memorial Day.
The index has rallied 22 percent from an almost 3-1/2-year low in January. Last week it touched a nine-month high of 14,143.50.
"Right now the market is very stretched," said Youssef Zohny, portfolio manager at StennerZohny Investment Partners.
It is vulnerable to profit-taking going into the summer months, with U.S. interest rate hikes one possible catalyst for a pull-back, he added.
Federal Reserve Chair Janet Yellen suggested on Friday that an interest rate hike in the United States may be around the corner.
Enbridge Inc (ENB.TO: Quote) fell 1.2 percent to C$52.16, while the overall energy group was down 0.5 percent.
Some investors may have sold in advance of a meeting on Thursday of the Organization of the Petroleum Exporting Countries, said Zohny.
U.S. crude futures CLc1 rose 27 cents to $49.60 a barrel, although uncertainty ahead of the OPEC meeting was expected to cap gains. [O/R] Continued...