Canada’s main stock index declined on Friday, dragged down by losses in technology shares, as Israel’s widescale strikes on Iran dampened global risk appetite.
The S&P/TSX composite index was down 0.5% at 26,490.64 points.
Israel has warned that the strikes were the start of a prolonged operation to prevent Tehran from building an atomic weapon. Iran has promised a harsh response.
However, U.S. President Donald Trump urged Iran to make a deal over its nuclear programme, saying there was still time for the country to prevent further conflict with Israel.
The downturn in the TSX was limited as investors shifted to safe-haven assets, boosting metal mining shares. The materials sector gained 0.6%
The energy sector rose 1.7% to be the top gainer as the tensions in the Middle East sparked worries about supply disruptions, boosting crude prices.
“I don’t think it’s any surprise that Toronto Stock Exchange is going to hold up greater than New York, which is more based on technology or multinational corporations,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
“Gold and oil make up a big chunk of our market and anything commodities-based is relatively going to do well”.
The technology sector fell 1.5%, while the heavyweight financial stocks were down nearly 1%.
The benchmark index achieved a second consecutive record high on Thursday and appears poised to secure its third straight weekly gain, provided losses remain contained.
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