TSX slides as banks and energy firms reverse gains

Tue May 16, 2017 5:34pm EDT
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By Solarina Ho

TORONTO (Reuters) - Canada's main stock index fell on Tuesday as bank and energy shares, pinched by housing market jitters and lower oil prices, weighed on the market.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE fell 86.14 points, or 0.55 percent, to close at 15,543.33. Seven of the index's 10 key sectors lost ground.

Financial stocks, which account for roughly a third of the index's weight, slipped 0.7 percent, as Toronto Dominion Bank (TD.TO: Quote) fell 0.9 percent to C$63.13, leading the group's declines.

John Ing, president of Maison Placements Canada, said market gyrations will continue given the concerns about the banks' exposure to Canada's overheated housing market.

"Home Capital is still in intensive care. Until that and other evidence of the housing market settles down - then I think people will stop focusing on the bank," he said.

Home Capital Group Inc (HCG.TO: Quote) has struggled with financing problems following accusations by the Ontario Securities Commission that it made misleading statements to investors.

Oil and gas companies retreated in tandem with the price of crude, which fell ahead of weekly U.S. inventory data. U.S. crude CLc1 prices were down 1.3 percent to $48.23 a barrel.

The overall energy group dropped 1.3 percent, with Enbridge Inc (ENB.TO: Quote) down 1.3 percent to C$53.84.   Continued...

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