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CANADA STOCKS-TSX drops as trade concerns cloud strong economic growth

Published 2018-09-28, 10:31 a/m
© Reuters.  CANADA STOCKS-TSX drops as trade concerns cloud strong economic growth
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Sept 28 (Reuters) - Canada's main stock index fell on Friday as worries over NAFTA negotiations overshadowed a stronger-than-expected domestic economic growth that raised expectations of another interest rate hike.

* At 9:56 a.m. ET (13:56 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 64.61 points, or 0.4 percent, at 16,140.01.

* The Trump administration is expected to release the text of its bilateral trade deal with Mexico on Friday and which could exclude Canada from the revamped NAFTA pact as there was little optimism a trade deal with the country could be reached quickly. On the economic front, Canada's economy expanded 0.2 percent in July, greater than the 0.1 percent growth predicted by analysts in a Reuters poll, increasing market expectations of another interest rate hike next month. Seven of the index's 11 major sectors were lower, with bank stocks leading the declines.

* The financials sector .SPTTFS , which accounts for more than a third of the main index's weight, slipped 0.3 percent.

* Bank of Montreal BMO.TO , down 0.7 percent, and Bank of Nova Scotia BNS.TO , off 0.6 percent, were the biggest laggards on the financial group.

* The energy sector .SPTTEN dropped 0.2 percent, second biggest drag on the main index.

* Leading declines among energy stocks were Enbridge ENB.TO , Canadian Natural Resources CNQ.TO , TransCanada Corp TRP.TO , down between 0.4 percent and 0.8 percent.

* The industrials sector .GSPTTIN fell 0.4 percent.

* The materials sector .GSPTTMT , which includes precious and base metals miners and fertilizer companies, added 0.1 percent as gold futures GCc1 rose 0.3 percent to $1,185.2 an ounce, while copper prices CMCU3 advanced 0.5 percent to $6,217.5 a tonne. GOL/ MET/L

* On the TSX, 104 issues were higher, while 124 issues declined for a 1.19-to-1 ratio to the downside, with 9.79 million shares traded.

* The largest percentage gainers on the TSX were Blackberry BB.TO , which jumped 4.8 percent after posting better-than-expected quarterly profit and Nexgen Energy NXE.TO , which rose 3.5 percent.

* Aurora Cannabis ACB.TO fell 2.9 percent, the most on the TSX, followed by Magna International MG.TO , down 2.4 percent.

* The most heavily traded shares by volume were Aurora Cannabis ACB.TO , Royal Nickel RNX.TO , and Coro Mining Corp COP.TO .

* The TSX posted one new 52-week highs and one new low.

* Across all Canadian issues, there were five new 52-week highs and 10 new lows, with total volume of 17.28 million shares.

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