TSX falls for fifth straight day as financial slide

Tue Jun 14, 2016 4:33pm EDT
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index fell for a fifth straight day on Tuesday, hitting a three-week low as financial and resource stocks retreated ahead of Britain's vote on whether to leave the European Union.

The heavyweight financials group fell 1.0 percent as worries about a potential British exit saw investors push Germany's 10-year bond yield below zero for the first time.

Opinion polls show growing support for Britain to leave the EU, which investors worry could tip the bloc into recession.

"The market is reacting to that in quite a negative fashion," said Elvis Picardo, vice president of research at Global Securities.

Recent focus on Canada's potentially overheated housing market has also been a headwind for financials, Picardo added.

"It raises concerns among investors about the extent of the exposure that the banks have to the mortgage business in Canada," he said.

Royal Bank of Canada (RY.TO: Quote) fell 1.8 percent to C$77.11 and Toronto-Dominion Bank (TD.TO: Quote) declined 1.2 percent to C$55.86.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 109.65 points, or 0.78 percent, at 13,884.23. The index hit its lowest since May 19 at 13,855.48.   Continued...

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