TSX falls for fourth straight day as global jitters weigh

Mon Jun 13, 2016 5:30pm EDT
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index fell for the fourth straight day on Monday, hitting a nearly three-week low as global jitters about whether Britain will vote to leave the European Union weighed, but losses were restrained by gains in resource stocks.

Financial stocks fell in line with Asian and European shares as investors worried that a "Brexit" could tip Europe back into recession and as core sovereign debt yields declined.

Lower bond yields hurt margins for the banks and raise the value of long-term liabilities held by insurance companies, said Steve Belisle, senior portfolio manager at Manulife Asset Management.

Bank of Montreal (BMO.TO: Quote) declined 0.7 percent to C$82.52, while Brookfield Asset Management (BAMa.TO: Quote) slipped 3.9 percent at C$43.81.

Selling by exchange traded funds weighed on Brookfield's shares following recent changes to the company's index classification, said Belisle.

The overall financials group fell 0.5 percent, while industrial stocks dropped 0.9 percent, including losses for railway stocks. The telecommunications group declined 1.2 percent.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 43.66 points, or 0.31 percent, at 13,993.88. The index hit its lowest since May 24 at 13,958.82.

Eight of the index's 10 main groups ended lower.   Continued...

A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. Canada's main stock index was little changed on Monday as weakness in financial and energy shares offset gains in the materials sector.   REUTERS/Mark Blinch