TSX dips as gold losses weigh ahead of Brexit vote

Tue Jun 21, 2016 5:11pm EDT
 
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By Fergal Smith

TORONTO (Reuters) - Canada's main stocks edged lower on Tuesday as losses for gold ahead of a vote by Britain on its European Union membership weighed on mining stocks, offsetting gains for financial and energy stocks.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.9 percent, including a 3 percent drop in shares of Barrick Gold Corp (ABX.TO: Quote) to C$24.54.

Spot gold XAU= fell 1.9 percent as U.S. and European shares rose amid receding expectations that Britain could vote to leave the European Union in Thursday's referendum. [GOL/][MET/L]

Industrial stocks also lost ground, falling 0.9 percent as railway stocks retreated.

Canadian Pacific Railway Ltd (CP.TO: Quote) slid 2.3 percent to C$159.30 after warning it expects revenue to fall about 12 percent in the second quarter from a year ago.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 2.82 points, or 0.02 percent, at 14,012.32. Five of the index's 10 main groups ended lower.

The index has retreated 3 percent from a recent 10-month peak at 14,450.91 as the so-called Brexit risk weighed on global stocks.

It will require a further recovery in the price of oil for the TSX to reach new highs, said Bryden Teich, associate portfolio manager at Avenue Investment Management.   Continued...

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