Canada’s main stock index edged lower on Thursday, weighed down by declines in the materials and consumer discretionary sectors, as Middle East tensions kept risk appetite in check.
The S&P/TSX composite index ended down 53.85 points, or 0.2%, at 26,506.00, extending its consolidation below the record closing high it posted last Thursday at 26,615.75.
Volumes were lower than usual with U.S. markets closed for the Juneteenth National Independence Day holiday.
Geopolitics could be raising volatility but the longer-term trend higher appears intact, said Sid Mokhtari, chief market technician for CIBC Capital Markets, adding “we are finding this to be a resting phase for the market before it can resume its uptrend forces.” A week-old conflict between Israel and Iran escalated with no sign of an exit strategy from either side.
“We are seeing energy for obvious reasons rebuilding its (positive) technical backdrop,” Mokhtari said. The price of oil rose 0.9% to $75.80 a barrel as the conflict threatened crude supplies.
The energy sector was up 0.7%, but materials, which include fertilizer companies and metal mining shares, lost 0.7%.
Consumer discretionary fell 0.4% and technology ended 0.3% lower. Shares of Algoma Steel Group rose 4.5% as Prime Minister Mark Carney told reporters Canada will soon adopt tariff measures to address risks associated with persistent global overcapacity and unfair trade in steel and aluminum.
Food retailer Empire Company Ltd was another standout. Its shares jumped 5.3% after the company beat quarterly profit estimates.
Reuters