Materials sector leads Toronto market declines, U.S. indices largely flat - InfoNews

Current Conditions


Materials sector leads Toronto market declines, U.S. indices largely flat

Financial numbers flow on the digital ticker tape at the TMX Group in Toronto's financial district on May 9, 2014. THE CANADIAN PRESS/Darren Calabrese
March 14, 2019 - 1:52 PM

TORONTO - The materials sector led a broad-based decline Thursday on Canada's main stock index while U.S. markets were largely flat.

The S&P/TSX composite index closed down 62.42 points at 16,087.55 after trading as high as 16,144.46 on fairly low volume of 196.6 million shares.

The materials index had the biggest declines at 1.84 per cent after the April gold contract ended down US$14.20 at US$1,295.10 an ounce.

Most sectors were down, with only energy and information technology notching tiny gains.

The continued climb in oil prices, with the April crude contract up 35 cents at US$58.61 per barrel, helped offset the losses from the gold price decline, said Kash Pashootan, CEO and chief investment officer at First Avenue Investment Counsel Inc.

"That push and pull is resulting in a neutral outcome."

In New York, the Dow Jones industrial average closed up 7.05 points at 25,709.94. The S&P 500 index was down 2.44 points at 2,808.48, while the Nasdaq composite was down 12.50 points at 7,630.91.

Thursday's slight declines came after several positive days where gains were helped along by technical factors including the soon to close window for company share buybacks, monthly options expiring, and low volatility, said Pashootan.

"You are seeing meaningful inflows of capital from corporations, buying back their shares and pushing share prices higher."

He said the recent gains continue to be disconnected from broader economic factors, including new U.S. home sales down more than expected in January.

"We are continuing to witness a disconnect between the optimism that is taking place in the equity markets and what the fundamentals are telling us."

The markets largely shrugged off a delay in a meeting between the U.S. and China leadership on trade, said Pashootan.

"For the time being you're seeing China-U.S. talks behave as more the side dish to volatility as opposed to the main course, which is what we saw in 2018."

The Canadian dollar averaged 75.04 cents US, unchanged from Wednesday.

The April natural gas contract was up four cents at US$2.86 per mmBTU. The April gold contract ended down US$14.20 at US$1,295.10 an ounce and the May copper contract was down four cents at US$2.89 a pound.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)

News from © The Canadian Press, 2019
The Canadian Press

  • Popular penticton News
  • Comments
  • Rewards for missing pets occupy legal grey zone
    KELOWNA - John Brooke was walking in the woods near Glenrosa two weeks ago when his dog Gus went missing. Brooke said he lost sight of his dog and spent the next two hours whistling for him to no
  • UPDATE: No injuries in Trans-Canada Highway avalanche
    REVELSTOKE — The Trans-Canada Highway near Revelstoke is currently closed after an avalanche hit this afternoon. A small natural avalanche occurred 46 km east of Revelstoke at about 1
  • Penticton man gets two years for sexual interference with daughter
    CONTENT ADVISORY PENTICTON - A Penticton man has pleaded guilty to sexually interfering with his daughter and was sentenced to two years in prison today. The 46-year-old Penticton ma
  • Salmon Arm man fined $3,000 for poaching cow moose
    SALMON ARM - A Salmon Arm man has been fined $3,000 and had two firearms confiscated for poaching a cow moose out of season. B.C. Conservation Officer Service spokesperson Tanner Beck said t
  • TRENDING NOW: Voice actress trolls scammer
    %%nodefaultimage%% Rosie Okumura is a California-based artist who likes to have a little fun with scammers. In the first part of the video she explains the scam that targets film indus
View Site in: Desktop | Mobile