September 2, 2014 / 8:59 PM / 6 years ago

CANADA STOCKS-TSX slips as weaker commodity prices weigh on resource stocks

By Solarina Ho
    TORONTO, Sept 2 (Reuters) - Canada's main stock index dipped
marginally on Tuesday as tumbling resource stocks, hurt by
falling oil and gold prices, offset gains in financial and
industrial stocks.
    The retreat comes in the broader context of an ascendant
index hitting fresh record highs often during three straight
months of gains.
    "It's continued expectation that we'll be in this Goldilocks
recovery, which is growth, but not growth that's going to be
robust," said Paul Taylor, chief investment officer of
Fundamental Equities at BMO Asset Management Inc. 
    "In Canada, it's the offset. Commodities are doing lousy and
the financials are holding in."
    Brent crude fell to a 16-month low on concerns over slowing
oil demand in China and Europe, while a strong dollar and ample
supplies drove U.S. crude to a seven-month low. The greenback
rally and falling oil prices also sent gold prices tumbling.
    Energy and gold companies populated the top 10 most
influential declining stocks on the TSX, with energy shares down
1.9 percent. The materials group, home to gold miners, fell 1.6
    Canadian Natural Resources led the decliners with a
2.6 percent retreat to C$46.17, followed by Goldcorp Inc,
which fell 4.2 percent to C$29.24. 
    The Toronto Stock Exchange's S&P/TSX composite index
 eased 6.65 points, to finish at 15,619.08. Seven of
the 10 main groups were in positive territory.
    "Investors, both institutional and retail in some cases, are
buying on the dips, that's been the story," said Bob Gorman,
chief portfolio strategist at TD Waterhouse.
    Offsetting the losses was a 0.4 percent increase in the
hefty financials group, which saw Bank of Montreal up 1.2
percent at C$84.62 and Canadian Imperial Bank of Commerce
 gaining 0.8 percent to C$104.77.
    The industrials group rose 1.2 percent, helped by Canadian
National Railway's 1.3 percent rise to C$79.10 and Canadian
Pacific Railway's 2.3 percent advance to C$222.88.

 (Additional reporting by Alastair Sharp; Editing by Meredith
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