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CANADA STOCKS-TSX pulls back from record high as energy, Linamar weigh

Published 2017-11-08, 05:03 p/m
© Reuters.  CANADA STOCKS-TSX pulls back from record high as energy, Linamar weigh
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* TSX down 26.44 points, or 0.16 percent, to 16,105.35

* Seven of the TSX's 10 main groups were down (Updates throughout with closing figures, investor comment)

By Solarina Ho

TORONTO, Nov 8 (Reuters) - Canada's main stock index lost ground on Wednesday, with the recent string of record gains capped by a retreat in financial and energy stocks, and quarterly results that missed targets.

TransCanada Corp TRP.TO was the index's most influential loser, slipping 1.1 percent to C$61.93. Encana Corp ECA.TO fell 1.7 percent to C$16.04 after reporting a third quarter profit decline on lower oil and gas production. broadly, energy stocks were down 0.2 percent as U.S. crude CLc1 prices fell 0.7 percent to $56.82 a barrel following data that showed rising U.S. crude production and a decline in monthly Chinese crude imports. Toronto Stock Exchange's S&P/TSX composite index .GSPTSE fell 26.44 points, or 0.16 percent, to finish at 16,105.35. The TSX touched a record 16,131.79 in the previous session.

"We're now in record territory - it's uncharted territory," said Elvis Picardo, portfolio manager at HollisWealth Inc, noting that most of the TSX's gains have been recent, and it is making up for its underperformance compared to most other major indexes during the first three quarters of this year.

"I think sentiment is still quite bullish in keeping with the risk-on appetite around the world."

Of the index's 10 primary groups, seven lost ground, including consumer discretionary stocks, which fell 1.0 percent. Sector constituents include auto parts makers Linamar Corp LNR.TO , which tumbled 13.9 percent to end at C$66.24 after a third quarter miss, and larger rival Magna International Inc MG.TO which lost 2.2 percent to C$67.87.

Intact Financial Corp IFC.TO fell 3.4 percent to C$103.31 after a disappointing third quarter. major banks also lost some ground, helping to pull the overall group, which accounts for about a third of the index's weight, down 0.2 percent. Sun Life Financial SLF.TO fell 1.2 percent to C$49.47.

Given the solid global and domestic economic growth, Picardo said, investors are likely looking forward to bank earnings at the end of the month.

Tempering some losses was Fairfax Financial Holdings FFH.TO , which added 2.5 percent to C$700.73.

Agrium Inc AGU.TO fell 1.7 percent to C$136.33 after a bigger-than-expected quarterly loss.

The broader materials group, home to miners and fertilizer firms, advanced 0.3 percent.

ATS Automation Tooling Systems Inc ATA.TO slumped 4.1 percent to C$14.60 after third quarter results missed forecasts. Industrials as a whole fell 0.2 percent.

Declining issues outnumbered advancing ones on the TSX by 143 to 100, for a 1.43-to-1 ratio on the downside.

The index had 15 issues hitting new 52-week highs.

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