Winning Streak on TSX Cools off a Mite
It was just a matter of time, but elements threw cold water on the upward momentum of Canada’s largest market as weakness in health-care and consumer stocks outdid gains by energy issues.
The TSX tumbled 121.19 points from Friday’s all-time high to conclude Monday at 19,730.99
The Canadian dollar eked up 0.10 cents to 82.88 cents U.S.
Even so, Reuters poll of strategists predicted that the main index will climb above the 20,000 mark by the end of 2021 as a recovery in the global economy from the coronavirus crisis boosts the outlook for resource stocks.
Health-care stocks weighed heaviest on the index, with Cronos Group fading 59 cents, or 5.5%, to $10.22, while Organigram Holdings lost 16 cents, or 4.2%, to $3.68.
Consumer discretionary stocks also got pounded, Sleep Country handing back 63 cents, or 2.1%, to $29.39, while Aritzia descended 42 cents, or 1.4%, to $29.33.
In consumer staples, Empire Company dropped 87 cents, or 2.1%, to $40.47, while Saputo wilted 69 cents, or 1.7%, to $41.23.
Energy tried to pick up the slack, with Whitecap Resources gaining 37 cents, or 6.5%, to $6.10, while MEG Energy tallied 37 cents, or 4.7%, to $8.40.
On the economic calendar, Statistics Canada’s industrial product price index rose 1.6% month over month in April and 14.3% compared to April 2020 in April, while its raw material price index hiked 1.0% on a monthly basis in April and 56.4% compared to April 2020.
Data showed Canada’s current account balance was a surplus of $1.18 billion in the first quarter, from a revised $5.27-billion deficit in the fourth quarter of 2020, due to higher trade in goods and services.
Oil prices strengthened 59 cents to $66.91 U.S. a barrel.
Gold prices gained $4.20 to $1,909.50 U.S.
The TSX Venture Exchange gathered 2.35 points to 968.63.
All but two of the 12 subgroups moved lower, with health-care down 1.5%, while consumer discretionary and consumer staples each shed 1.2%.
Only energy gained ground, and 1.5% at that, while real-estate was unchanged.
U.S. markets were shuttered Monday for Memorial Day