CANADA STOCKS-TSX retreats from record high as materials lose ground

Tue Feb 14, 2017 11:07am EST
 
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* TSX down 35.88 points, or 0.23 percent, at 15,720.70

* Six of the TSX's 10 main groups were lower

TORONTO Feb 14 (Reuters) - Canada's main stock index dipped on Tuesday after five straight days of gains that took it to an all-time high, as the materials group lost ground and investors weighed testimony from Federal Reserve Chair Janet Yellen.

At 10:36 a.m. ET (1536 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 35.88 points, or 0.23 percent, at 15,720.70.

The Fed will probably need to raise interest rates at an upcoming meeting, Yellen said, although she flagged considerable uncertainty over economic policy under the Trump administration.

The prospect of U.S. economic stimulus has helped support stocks since the U.S. presidential election on Nov. 8. The TSX climbed 7 percent in that time, helped by a 13 percent gain for financials as bond yields climbed.

Higher bond yields reduce the value of insurance companies' liabilities and increase banks' net interest margins.

Financials reversed earlier losses on Tuesday to rise 0.1 percent, led by a 0.9 percent gain for Manulife Financial Corp to C$24.90.

But the materials group, which includes precious and base metals miners and fertilizer companies, lost 0.8 percent.   Continued...