TORONTO (Reuters) - Canada’s main stock index fell on Thursday as investors, positioning their portfolios at the end of the month, appeared less than impressed by a host of quarterly results.
Still, the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE rose 2.2 percent in April.
But those gains may be reaching their limits, as investors worry equities prices may have risen up too quickly given the uncertain economic and monetary environment.
“The TSX, like other global markets, is hitting some resistance levels,” said Youssef Zohny, portfolio manager at StennerZohny Investment Partners+. “I wouldn’t be surprised to see a global pullback as we enter the spring.”
“If monetary stimulus is not helping revive growth, then stocks are probably expensive,” he said.
Investors took a handful of less-than-stellar earnings reports as a sign to step back from some big names on Thursday.
Goldcorp Inc (G.TO), the world’s biggest gold producer by market value, weighed heaviest, falling 6.2 percent to C$22.71 after disappointing earnings.
Potash Corp POT.TO, the world’s biggest fertilizer company, missed quarterly forecasts and cut its full-year profit outlook, pushing its shares down 1.3 percent to C$39.28.
Suncor Energy Inc (SU.TO), Canada’s largest energy company, fell 1 percent to C$39.40 after its operating profit missed estimates as oil prices dropped by half.
And BCE Inc (BCE.TO), the country’s largest telecommunications company, dipped 1.8 percent to C$53.19 after reporting a modest gain in adjusted profit.
One notable exception was Lundin Mining Corp (LUN.TO), whose shares rose 10.5 percent to C$6.00 after it reported a sharp increase in earnings and revenue late on Wednesday.
The index ended the day down 124.20 points, or 0.81 percent, at 15,223.14.
“Pretty ugly today. Sour moods out in the markets,” said Barry Schwartz, portfolio manager at Baskin Financial Services.
“We’ve had a pretty good start to the year for the Toronto market. It’s beaten some of the other U.S. indices and it’s having a pretty good month. End of the month can always be wacky and weird, and people are positioning their portfolios,” he said.
Declining issues outnumbered advancing ones on the TSX by 161 to 83, for a 1.94-to-1 ratio on the downside. Of the index’s 10 main groups, all but healthcare retreated.
Additional reporting by Solarina Ho; Editing by Meredith Mazzilli