TORONTO (Reuters) - Canada’s main stock index slipped on Friday, weighed down by financials, industrials and resource stocks as they pulled back in line with softer prices for oil and other commodities.
“Today’s price action is somewhat suggestive that some of these commodity sectors are perhaps extended from the perspective of the run that they’ve had,” said Sid Mokhtari, market technician and director of institutional equity research at CIBC World Markets.
Gold miners cushioned the fall, however, as bullion shrugged off a stronger U.S. dollar and data suggesting a brighter outlook for the U.S. economy. [GOL/]
Barrick Gold Corp ABX.TO gained 2.5 percent to C$23.86, Kinross Gold Corp K.TO added 2.5 percent to end at C$6.69, and Eldorado Gold Corp ELD.TO rose 4.1 percent to C$6.33.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE settled down 39.22 points, or 0.28 percent, at 13,748.58, with seven of its 10 main sectors notching losses. It gained 0.3 percent on the week.
The energy group lost 0.7 percent as oil prices ended a three-day bull run, falling as a stronger dollar weighed and investors cashed in recent gains. [O/R]
The heavyweight financials group slipped 0.4 percent, while industrials fell 0.9 percent.
Brookfield Asset Management BAMa.TO lost 1.1 percent to C$42.92. It entered exclusive talks to buy a natural gas pipeline unit from Brazil’s Petrobras, the state oil producer said after the close on Thursday.
The country’s two main rail companies also fell, with Canadian Pacific Railway Ltd CP.TO down 2 percent at C$172.87 and Canadian National railway Co CNR.TO off 0.8 percent at C$76.03.
CIBC’s Mokhtari said the index, which has recovered steadily since falling below 11,600 in January, was exhibiting positive technical characteristics including holding above a rising 50-day moving average, with more than 80 percent of companies trading above both their 100- and 200-day moving averages.
Sirius XM Canada Holdings Inc XSR.TO jumped 8 percent to C$4.57 after SiriusXM Holdings Inc SIRI.O, its biggest shareholder, said it and two top Canadian shareholders will take the satellite radio service private.
Reporting by Alastair Sharp; Editing by Meredith Mazzilli and James Dalgleish