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Oct 4 (Businesshala) – Canada’s main stock index retreated on Monday, as technology stocks tracked a slide in the US tech-heavy Nasdaq, prompting a jump in oil stocks.
At 9:47 a.m. ET (13:47 GMT), the Toronto Stock Exchange’s S&P/TSX Composite Index was down 34.5 points, or 0.17%, at 20,116.37, weighed by the technology and healthcare sectors.
Technology stocks fell 2.3%, tracking the Nasdaq index, hitting a two-month low, with sector giants coming under pressure from a bounce in bond yields.
Healthcare stocks fell 2.0%, with pot producers Canopy Growth Corp., Tilray Inc. and Aurora Cannabis Inc. among the top losers.
Global stocks were also down as investors feared that global inflation could last longer than expected, with continued rise in commodity prices and ongoing supply disruptions in many parts of the world, urged US Federal Reserve Chairman Jerome Powell. Despite that high inflation is fleeting.
Gregory Taylor, portfolio manager at Purpose Investments, said, “I think people are quite cautious right now to see what the earnings are going to be like, and we also started the first real corrective action in September.”
Meanwhile, energy stocks edged up 2.1%, limiting further losses in the index, extending gains for the fourth straight session, as oil prices stabilized ahead of a meeting of the Organization of the Petroleum Exporting Countries and its allies to decide on output. Was.
“Oil is taking a really big step forward, it’s certainly healthy for energy stocks, but it also adds to the inflation narrative,” Taylor said.
Financial services firm Sun Life Financial Inc gained 1.3% after agreeing to buy oral healthcare company DentaQuest for $2.47 billion.
Fuel-cell product maker Ballard Power Systems Inc. and IT services provider Lightspeed Commerce Inc. were the biggest losers in the index.
The TSX posted 11 new 52-week highs and four new lows.
Among all Canadian issues, there were 38 new 52-week highs and 21 new lows with a total volume of 44.24 million shares.