TSX ends lower as investors brace for bank earnings
Reuters
Published Feb 26, 2024 07:26AM ET
Updated Feb 26, 2024 04:21PM ET
By Fergal Smith
(Reuters) -Canada's commodity-linked main stock index pulled back from a 22-month high on Monday as metal prices fell and investors turned cautious ahead of earnings reports this week from major domestic banks.
The Toronto Stock Exchange's S&P/TSX composite index ended down 88.84 points, or 0.4%, at 21,324.31, after posting on Friday its highest closing level since April 2022.
"There's not a lot of urgency to buy anything today," said Greg Taylor, portfolio manager at Purpose Investments. "Everyone's more just recovering from the big week we had last week with some big moves in technology."
The high-dividend paying utilities sector lost 2.2% as bond yields climbed and financials, the most heavily-weighted sector on the TSX by far, were down 0.7%.
Bank of Montreal and Bank of Nova Scotia are due to report earnings on Tuesday, kick-starting Canada's bank earnings season.
"There's still some nervousness with the banks ... Some of the (analyst) previews were a little more cautious on commercial real estate," Taylor said.
The materials sector, which includes precious and base metals miners and fertilizer companies, declined 1.2% as gold and copper prices fell.
Technology was a bright spot, adding 0.7%, while energy was up 0.5% as oil settled 1.4% higher at $77.58 a barrel on possible shipping disruptions.
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Written By: Reuters
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