July 26, 2018 / 11:54 AM / 10 months ago

TSX slips as materials lower after weak earnings

(Reuters) - Canada’s main stock index fell on Thursday, pressured by disappointing results from materials companies and sliding gold prices.

The Toronto Stock Exchange sign is seen in Toronto, Ontario, Canada July 6, 2017. REUTERS/Chris Helgren

At 9:35 a.m. ET (1335 GMT), the Toronto Stock Exchange’s S&P/TSX Composite index was down 25.94 points, or 0.16 percent, at 16,394.82.

Seven of the index’s 11 major sectors were lower, weighed by the materials sector, which includes precious and base metals miners and lost 0.8 percent.

The top drag to the sector was Barrick Gold, which fell 4.3 percent after the company missed estimates for quarterly profit on Wednesday.

A 4.1 percent decline in shares of Goldcorp and a near 17 percent fall in New Gold following disappointing quarterly results also weighed on the materials group.

Gold edged lower in response to an easing of trade tensions after the United States agreed to refrain from imposing tariffs on cars from the European Union.

The energy sector edged up 0.2 percent, boosted by a 1.2 percent gain in shares of Suncor Energy following a quarterly profit beat on Wednesday.

On the NAFTA front, Canadian and Mexican officials insisted on Wednesday that the agreement remains a trilateral pact and reiterated their opposition to U.S. calls for a so-called “sunset clause” that could end the deal after five years.

On the TSX, 90 issues were higher, while 144 issues declined for a 1.60-to-1 ratio to the downside, with 8.75 million shares traded.

The largest percentage gainers on the TSX were NexGen Energy Ltd (NXE.TO), which jumped 5.9 percent after the company posted a higher profit and Cameco Corp (CCO.TO), which rose 4.7 percent after a brokerage upgraded its rating following quarterly results.

Shares of New Gold, which fell 19.3 percent, were the top laggard on TSX, followed by shares of Maple Leaf Food (MFI.TO) - down 4.4 percent - after both companies reported disappointing quarterly results.

The most heavily traded stocks by volume were Aurora Cannabis (ACB.TO), New Gold and Aimia Inc (AIM.TO).

The TSX posted no new 52-week highs and four new lows.

Across Canadian issues, there were six new 52-week highs and seven new lows, with a total volume of 14.80 million shares.

Reporting by Shreyashi Sanyal in Bengaluru

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