A more than 3% tumble in energy stocks pushed Canada’s main stock index down for a third straight session on Tuesday, while Bank of Montreal slipped on disappointing quarterly results.
At 10:25 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 209.59 points, or 1.06%, at 19,626.53.
Seven of the index’s 11 major sectors were lower, pressured mostly by declines in energy and material stocks.
Bank of Montreal joined other Big Six banks in keeping aside higher provisions to brace against potential defaults with interest rates at multi-decade highs and an uncertain outlook, while reporting lower quarterly profit. Shares slipped 1.9%.
“The TSX is trading lower this morning in sympathy with lower commodity prices… Additionally, the Bank of Montreal is dragging on the TSX, impacted by greater loan loss provisions and weakness in capital markets,” said Brandon Michael, senior analyst at ABC Funds in Toronto.
The Canadian banks index has lost 2.8% since the lenders began reporting results last Tuesday, while the broader Toronto stocks benchmark has skid 0.7% since then.
“That said, weakness emanating from energy and financials is being partially offset by strength in the technology sector, which is rebounding from deeply oversold conditions as investors may be squaring their positions ahead of month end,” Michael added.
Rate-sensitive technology stocks firmed 0.1%, while the energy sector dropped 3.5% as oil prices fell by more than $3 a barrel on fears that an inflation-induced weakening of global economies would soften fuel demand.
The materials sector, which includes precious and base metals miners and fertilizer companies, lost 2.1% as gold futures fell 0.5% to $1,728.5 an ounce, and copper prices slid 3.5% to $7,875 a tonne, as investors positioned for higher interest rates globally.
The broader financial sector slipped 0.6%, while the industrials sector fell 0.9%.
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