CANADA STOCKS-TSX retreats as banks, tech stocks weigh

Mon Jun 12, 2017 5:04pm EDT
 
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* TSX closes down 89.41 points, or 0.58 percent, at 15,383.80

* Seven of the TSX's 10 main groups lower (Adds portfolio manager quotes and details throughout; updates prices)

By Fergal Smith

OTTAWA, June 12 (Reuters) - Canada's main stock index ended lower on Monday, weighed down by losses for heavyweight banking stocks after two days of strong gains, and as the country's technology sector tracked the larger U.S. tech group down.

The Toronto Stock Exchange's S&P/TSX composite index closed down 89.41 points, or 0.58 percent, at 15,383.80. Seven of its 10 main sectors fell.

Investor enthusiasm for equity markets has been dampened by stretched valuations, said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates.

"The assumptions have been that politics and interest rates wouldn't matter that much ... I think some of those assessments are coming out of the market."

The Federal Reserve is expected on Wednesday to raise interest rates for the third time since December, while comments by a senior Bank of Canada official raised the prospect that the central bank could hike rates sooner than investors had anticipated.

The tech sector lost 2 percent as CGI Group lost 1.5 percent to C$66.15 and BlackBerry Ltd tumbled nearly 5 percent to C$14.11.   Continued...