TSX dips as oil falls, resource stocks retreat
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index dipped slightly on Tuesday as oil prices fell and resource stocks retreated, offsetting gains by consumer and technology stocks.
The index has rallied more than 25 percent since January, helped by a partial recovery in oil prices. Last week it reached an 11-month high of 14,558.12.
"I think it really does come down to oil," said Philip Petursson, chief investment strategist at Manulife Investments, who expects the recent pullback in oil prices to prove temporary and the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE index to rise to between 14,750 and 15,000 by the end of the year.
Oil prices slipped as a rallying U.S. dollar and a global fuel glut offset forecasts of a ninth straight weekly drop in U.S. crude stockpiles. U.S. crude oil futures CLc1 settled 59 cents lower at $44.65 a barrel.
Suncor Energy Inc (SU.TO: Quote) fell 1.1 percent to C$35.80, while the overall energy group declined 0.7 percent.
The materials group, which includes precious and base metals miners and fertilizer companies, dropped 0.8 percent even as gold edged higher and some base metals reached multi-month highs.
First Quantum Minerals Ltd (FM.TO: Quote) fell 4.1 percent to C$9.98, and Teck Resources Ltd TCKb.TO declined 6.0 percent to C$17.47. Fertilizer company Agrium Inc AGU.TO fell nearly 2 percent to C$122.50.
The S&P/TSX composite index closed down 7.79 points, or 0.05 percent, at 14,524.61. Five of the index's 10 main groups ended in negative territory. Continued...