TSX ends lower as tech falls, investors weigh bank earnings
Reuters
Published Aug 24, 2023 07:33AM ET
Updated Aug 24, 2023 04:26PM ET
By Fergal Smith
(Reuters) -Canada's main stock index fell on Thursday, including losses for energy and technology shares, but the index's losses were capped as investors eyed beaten-down dividend paying stocks, including major banks as they began reporting quarterly earnings.
The Toronto Stock Exchange's S&P/TSX composite index ended down 103.96 points, or 0.5%, at 19,775.83, giving back some of the previous day's rally.
The major U.S. stock indexes posted bigger declines, with investors nervous ahead of Federal Reserve Chair Jerome Powell's speech on Friday which could offer clues on the interest rate outlook.
"Considering the softness on the U.S. side, the Canadian market held up well," said Lorne Steinberg, president, Lorne Steinberg Wealth Management Inc.
The Toronto market's technology sector fell 1.5% and energy was down 1.2% as oil touched a one-month low intraday before settling 0.2% higher at $79.05 a barrel.
"A large part of the Canadian weakness (since last year) has been centered around dividend stocks underperforming in a rising rate environment," Steinberg said.
"We're coming to an end or maybe we're at the end of the rising rate environment. And so suddenly those beaten down stocks look pretty cheap."
The consumer staples group rose 0.7%, while the decline for the heavily-weighted financials group was modest at 0.2%.
Shares of Toronto-Dominion Bank were down 3.2% after the bank missed analysts' estimates for quarterly profit. But Royal Bank of Canada shares ended 2% higher as it beat estimates, helped by cost cutting measures.
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Written By: Reuters
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