(Adds investor quote and description; updates prices)
* TSX ends down 1.4%
* Posts its lowest closing level since September 20
* Tech stocks fall by the steepest since last November
* Kirkland Lake Gold Ltd. is down 7.4%
TORONTO, Sep 28 (Businesshala) – Canada’s main stock index fell to its lowest level in more than a week on Tuesday as rising global bond yields prompted investors to favor stocks of technology companies more sensitive to the economic outlook. encouraged to sell.
The Toronto Stock Exchange’s S&P/TSX composite index fell 289.28 points, or 1.4%, to 20,174.14, its lowest level since September 20.
“Technology in both Canada and the US is bearing the brunt of the decline,” said Mike Archibald, portfolio manager at AGF Investments.
“You’ve seen a pretty significant increase in 10-year yields globally over the past several days and it’s really driving a shift in investor preferences in the more financially sensitive parts of the market.”
The information technology group fell 3.8%, its biggest drop since last November, as the US 10-year yield climbed to its highest level since June at 1.567%.
Shares of Shopify Inc., the company with the highest market cap on the TSX, ended 4.8% lower.
High returns reduce the value of future cash flows, so they especially hurt stocks of companies with high growth potential.
Canada’s benchmark stock index is down nearly 2% so far in September after seven consecutive monthly gains.
Kirkland Lake Gold Ltd fell 7.4% when Agnico Eagle Mines Ltd agreed to buy out the miner in a stock deal valued at C$13.51 billion ($10.68 billion).
The Materials Group, which includes precious and base metal miners and fertilizer companies, lost 0.9%, while energy was almost unchanged.
US crude futures climbed to their highest level since July before settling down 0.2%. (Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Margarita Choy)