TORONTO: Canada's main stock index on Wednesday extended its pull back from a record high, with resource shares among the declining stocks as investors grew more worried about prospects for the global economy.
The Toronto Stock Exchange's S&P/TSX composite index ended down 64.84 points, or 0.3pc, at 20,741.79.
On Tuesday, the TSX touched a record intraday high of 20,897.57 before closing lower.
"A mid-cycle slowdown, or growth scare appears to be developing," said Angelo Kourkafas, an investment strategist at Edward Jones. "Growth estimates are being revised lower at the same time as expectations and valuations are elevated."
TSX hits record high on stimulus hopes
The energy group retreated 0.9pc, while the materials group, which includes precious and base metals miners and fertilizer companies, was down 1.1pc as gold and copper prices fell.
Copper producer First Quantum Minerals Ltd lost 7.5pc.
Central banks are "taking their foot off the accelerator," which adds to investor concerns, but the long-term story remains positive, with the full reopening of the economy still ahead, businesses needing to restock inventories and consumer savings at an elevated level, Kourkafas said.
The Bank of Canada has been reducing bond purchases in recent months. On Wednesday, it left its benchmark interest rate unchanged at a record low of 0.25pc and said it expects growth to strengthen in the second half of the year following a shock contraction last quarter.
Information technology gave back some recent gains, falling 1.3pc, while health care was down 2.8pc.
Comments
Comments are closed.