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CANADA STOCKS-TSX retreats on Evergrande fears; set for third straight weekly loss

CANADA STOCKS-TSX retreats on Evergrande fears; set for third straight weekly loss

reuters.com · 09/24/2021 09:57
CANADA STOCKS-TSX retreats on Evergrande fears; set for third straight weekly loss

Updates prices, adds comment

By Amal S

- Canada's main stock index retreated on Friday, after three straight sessions of gains, as fears over the fate of debt-ridden China Evergrande weighed on investor sentiment.

At 9:46 a.m. ET (13:46 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 43.01 points, or 0.21%, at 20,418.92, with technology .SPTTTK and healthcare .GSPTTHC stocks leading the decline. The index was on course for its third straight week of losses.

Global equities also fell, hurt by uncertainty around the fate of China Evergrande, which missed an interest payment deadline on Thursday and has entered a 30-day grace period. nL1N2QQ02J MKTS/GLOB

Toronto's main index was set to end September in losses after seven months of gains as worries around a slowdown in the post-pandemic economic recovery and concerns over the property developer's potential default rattled investors.

"We've got just some profit-taking after a really strong bounce back later this week," said Gregory Taylor, portfolio manager at Purpose Investments.

"There's some nervousness heading into earnings season, which starts in another few weeks, as we've had some big misses this week, with Nike last night and those are bellwethers for the global economy"

The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, fell 0.2%. While, the energy group gained .SPTTEN 0.7%, a day after hitting an over two-month high. GOL/ O/R

The heavyweight financials sector .SPTTFS, which accounts for about 30% of the Toronto market's value, rose 0.1%, extending gains for the fourth consecutive session.


HIGHLIGHTS

Ballard Power Systems Inc BLDP.TO and uranium miner Denison Mines Corp DML.TO were the biggest decliners on the TSX.

The TSX posted two new 52-week highs and 10 new lows.

Across all Canadian issues there were eight new 52-week highs and 34 new lows, with total volume of 37.86 million shares.


(Reporting by Amal S in Bengaluru; Editing by Shailesh Kuber)

((Amal.S@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 3677;))