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CANADA STOCKS-TSX falls as energy and financial shares retreat

Published 2017-07-28, 05:28 p/m
© Reuters.  CANADA STOCKS-TSX falls as energy and financial shares retreat
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* TSX closes down 62.71 points, or 0.41 percent, at 15,128.65

* Nine of the TSX's 10 main industry groups fall

* Index ends down 0.4 percent for week

By Fergal Smith

TORONTO, July 28 (Reuters) - Canada's main stock index fell on Friday, weighed by slips in financial, energy and consumer-related names despite strong domestic data and higher oil prices.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 62.71 points, or 0.41 percent, at 15,128.65.

The index, which has lagged global peers so far this year as its large energy group has weighed, fell 0.4 percent for the week.

Some negative earnings surprises in the United States have weighed on investor sentiment, said Philip Petursson, chief investment strategist at Manulife Investments.

Also, foreign investors may be waiting for "a better entry point" to invest in Canadian stocks after a surge in Canada's currency, Petursson said.

The loonie rallied for the fifth straight week, helped by data showing that Canada's economy expanded more than expected in May. data pointed to solid momentum in the second quarter and raised expectations for a second interest rate hike from the Bank of Canada in the coming months. interest rates could reduce the spending power of Canadians, while a stronger currency tends to hamper the competitiveness of exporters.

U.S. crude oil prices CLc1 settled 1.4 percent higher at $49.71 a barrel. But shares of energy companies, whose products are priced in U.S. dollars, fell 0.7 percent. O/R

Imperial Oil Ltd IMO.TO , fell 3.1 percent to C$36.08 after reporting an unexpected second-quarter loss due to planned and unplanned maintenance that curbed oil output. heavily weighted financials group retreated 0.3 percent, while the consumer discretionary and consumer staples groups each lost more than 1 percent.

Auto supplier Magna International Inc MG.TO fell nearly 2 percent to C$59.38 and convenience store operator Alimentation Couche Tard Inc ATDb.TO lost 2 percent to C$59.72.

Nine of the index's 10 main groups ended lower.

The materials group, which includes precious and base metals miners and fertilizer companies, added 0.3 percent, boosted by higher gold prices. GOL/

Bombardier jumped 4.6 percent to C$2.52 after posting its first quarterly profit in two years and saying it expects 2017 earnings before interest and tax to come in at the higher end of its forecast. the other side of the ledger, First Quantum Minerals FM.TO fell 3.8 percent to C$13.46 after reporting a loss versus expectations of profit.

Satellite and surveillance company MacDonald Dettwiler and Associates Ltd MDA.TO rose 8.4 percent to C$68.89 after reporting second quarter results late on Thursday, while shareholders of its acquisition target DigitalGlobe Inc DGI.N approved those merger plans.

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