(Reuters) - Canada’s main stock index treaded water on Thursday as upbeat earnings from companies including Shopify countered losses in energy shares on the back of lower crude prices.
Shopify Inc rose 8% after the e-commerce company raised its full-year revenue forecast and reported a quarterly profit that handily beat Wall Street estimates, as the investments to attract customers to its product offerings paid off.
The energy sector, which accounts for nearly a fifth of the index’s weight, dropped 1.9%, the most among the major Canadian sectors trading lower.
Oil prices fell for the first time in six days, after the U.S. Federal Reserve dampened hopes for a string of interest rate cuts and as rising U.S. output helped keep the market well supplied.
A rising dollar makes oil more expensive for holders of other currencies and tends to weigh on commodities priced in the U.S. currency. The dollar hit a two-year peak against the euro on Thursday after the Fed decision. [USD/]
The U.S. central bank reduced borrowing costs by a widely expected quarter of a percentage point on Wednesday, but Fed Chairman Jerome Powell signaled a series of further cuts was unlikely, leading to a sharp selloff.
At 9:49 a.m. ET (1349 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 2.58 points, or 0.02%, at 16,403.98.
The materials sector, which includes precious and base metals miners and fertilizer companies, lost 0.4% as gold futures fell 1.5% to $1,404.7 an ounce. [GOL/] [MET/L]
Thomson Reuters Corp’s shares rose 2.1% after the news and information provider raised its sales and core profit outlook for 2019 and 2020.
The largest percentage gainer on the TSX was Spin Master Corp, which jumped 12.9% after the company’s quarterly profit topped estimates.
Element Fleet Management Corp followed closely behind with a 8.5% rise after its second-quarter revenue beat expectations.
Hudbay Minerals plunged 21.1%, the most on the TSX, after a court ruling barred the company from proceeding with construction at its Rosemont project in Arizona.
The second-biggest decliner was Bombardier, down 17.6%, after the plane and train maker lowered its full-year core earnings and free cash flow forecasts.
On the TSX, 115 issues were higher, while 119 issues declined for a 1.03-to-1 ratio to the downside, with 36.15 million shares traded.
The TSX posted four new 52-week highs and three new lows.
Across all Canadian issues, there were 10 new 52-week highs and 13 new lows, with total volume of 52.86 million shares.
Reporting by Amy Caren Daniel in Bengaluru; Editing by Maju Samuel