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CANADA STOCKS-TSX hits one-month low as financials retreat

Published 2017-01-31, 05:28 p/m
© Reuters.  CANADA STOCKS-TSX hits one-month low as financials retreat
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* TSX ends down 19.16 points, or 0.12 percent, at 15,385.96

* Index posts its lowest close since Dec. 30

* Six of the TSX's 10 main groups end lower

By Fergal Smith

TORONTO, Jan 31 (Reuters) - Canada's main stock index fell to a one-month low on Tuesday as heavyweight financial shares declined, but some losses for the index were pared, while gold mining stocks climbed as gold prices benefited from pressure on the U.S. dollar.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 19.16 points, or 0.12 percent, at 15,385.96, its lowest close since Dec. 30.

The index fell for the fourth straight day for the first time since Donald Trump's victory in the U.S. presidential election in November.

"The equity market rally was getting a little bit long in the tooth and investors are taking a breather until they get a little bit more clarity on the political backdrop, particularly in the U.S.," said Candice Bangsund, portfolio manager at Fiera Capital.

Still, the index closed well above its intraday low of 15,313.02 and rose 0.6 percent for the month.

"The fundamental backdrop is still supportive," including earnings that have been coming in stronger than expected and economic growth which was already picking up before the U.S. election, Bangsund said.

The Canadian economy grew 0.4 percent in November from October, faster than economists had expected. fell 0.5 percent, with Toronto-Dominion Bank TD.TO down 0.7 percent at C$67.41.

Losses for financials came as bond yields eased on safe-haven demand and ahead of a decision on U.S. interest rates on Wednesday from the Federal Reserve. Oil Ltd IMO.TO reported a sharp rise in fourth-quarter profit, helped by a gain from the sale of its service stations. its shares dipped 0.1 percent and the overall energy group gained just 0.1 percent even as oil prices rose.

On Monday, the energy group hit its lowest in more than two months. It got a boost last week from revived prospects for the Keystone XL pipeline, but investors have been worried about a potential U.S. border adjustment tax.

U.S. crude CLc1 prices settled 18 cents higher at $52.81 a barrel after news OPEC oil production has fallen sharply this month. O/R

Six of the index's 10 main groups were lower, with industrials falling 0.9 percent as railroad stocks declined.

The materials group, which includes precious and base metals miners and fertilizer companies, added 1.3 percent as a weaker U.S. dollar .DXY helped push copper to a two-month high and gold to a one-week high. prices CMCU3 advanced 2.9 percent to $5,990.85 a tonne and gold futures GCc1 rose 1.4 percent to $1,209.3 an ounce.

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