TSX dips as energy stocks retreat ahead of OPEC meeting

Mon May 30, 2016 4:33pm EDT
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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...

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