Canada’s main stock index edged lower on Tuesday, hurt by technology stocks on the year’s penultimate session, but the index was still on track to record its best yearly performance since 2009.
Toronto’s S&P/TSX Composite index closed down 30.33 points, or 0.10%, at 31,866.26, recording its third daily losing streak, previously driven by a pause in the precious metals rally.
The benchmark is on track to end the year roughly about 29% higher, its best showing since 2009, lifted by heavyweight banking and mining stocks. Meanwhile, Wall Street indexes closed little changed in choppy trading, partially hurt by declines in technology and financial stocks. TSX’s technology sub-index tracked the decline, losing 1.4%.
Gold and silver gained ground on Tuesday, as safe-haven demand returned due to persistent geopolitical risks following a brief spell of profit-taking.
Mining stocks took the cue and were top gainers on the TSX, with the gold sub-index advancing 1%, closely followed by the materials sector, which rose 0.7%. Energy stocks also rose 1.4%.
Market observers say the “Santa Claus rally,” where indexes usually gain during the final five trading days of the year and the first two sessions of January, has been muted this year.
Michael Dehal, senior portfolio manager at Dehal Investment Partners at Raymond James, said with just a few days left in the year, “some year-end rebalancing is going on.”
On the macroeconomic front, the U.S. Federal Reserve agreed to cut interest rates at its December meeting only after a deeply nuanced debate about the risks facing the U.S. economy right now, according to minutes of the latest two-day session.
Reuters, Globe staff