Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

CANADA STOCKS-TSX 11-day win streak ends as resource shares fall

Published 2018-05-22, 05:01 p/m
Updated 2018-05-22, 05:10 p/m
© Reuters.  CANADA STOCKS-TSX 11-day win streak ends as resource shares fall

© Reuters. CANADA STOCKS-TSX 11-day win streak ends as resource shares fall

(Adds trader quotes and details throughout on activity; updates prices to close)

* TSX closes down 17.52 points, or 0.11 percent, at 16,144.79

* Index falls for first time in 12 sessions

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

By Fergal Smith

TORONTO, May 22 (Reuters) - Canada's main stock index edged lower on Tuesday, breaking its longest winning run in more than four years as shares of energy and materials companies lost ground.

The S&P/TSX composite index .GSPTSE closed down 17.52 points, or 0.11 percent, at 16,144.79.

The decline left the index short of matching the 12 session winning sequence achieved in 2014 and on four other occasions since 1981, according to Thomson Reuters data.

The TSX, which was closed on Monday for the Victoria Day holiday, has lagged many other major stock markets in 2018. But its recent string of gains has helped lift the index to near positive territory for the year.

"It is an old fashioned rally led by financials and oil companies," said Bruce Latimer, senior equity trader at Eight Capital. "People are waking up and realizing that oil is $72 a barrel and these companies are making money."

The energy group ended 0.9 percent lower on Tuesday but is up about 28 percent since February, while the financials group, which accounts for more than one-third of the weight of the TSX, has climbed 6.5 percent since mid-April.

Gains for financials have come as bond yields have moved higher. Higher bond yields reduce the value of insurance companies' liabilities and increase net interest margins of banks.

Canadian banks begin to report second quarter earnings this week. Investors will be looking to see the impact on profits of new tighter rules on mortgage lending.

On Tuesday, the largest decliner on the TSX was uranium producer Cameco Corp CCO.TO , which fell 6.8 percent.

The materials group, which includes precious and base metals miners and fertilizer companies, declined 0.6 percent.

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

Among the most active Canadian stocks by volume were Aurora Cannabis ACB.TO , up 5.8 percent to $8.38; Cenovus Energy CVE.TO , up 1.0 percent to $14.35 and Canopy Growth Co WEED.TO , up 9.4 percent to $39.44.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.