CANADA STOCKS-TSX drops as global appetite for equities wanes

Fri Apr 11, 2014 11:10am EDT

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* TSX down 48.31 points, or 0.34 percent, at 14,259.62
    * Nine of the 10 main index sectors decline
    * Energy shares slip despite higher oil prices

    By John Tilak
    TORONTO, April 11 (Reuters) - Canada's main stock index
dropped to its lowest in two weeks on Friday as worries that
valuations in the U.S. technology sector are too high hurt
global appetite for equities and helped pull down shares in most
major groups on the Toronto stock market.
    The anxiety that some share prices might have run ahead of
themselves, combined with uncertainty about the U.S. Federal
Reserve's monetary policy, continued to drag on investor
sentiment.
    The market was also digesting data on Friday that showed
U.S. producer prices jumping the most in nine months in March on
a surge in the cost of food and services. 
    The Toronto market's benchmark index declined for a second
straight session, though it is still up about 4.6 percent this
year. 
    "The market has had a pretty good run here, so a little
sideways movement is not going to hurt," said David Cockfield,
managing director and portfolio manager at Northland Wealth
Management. "I'm waiting for the panic to settle down."
    "I don't see any fundamental cracks in the system," he
added. "The market looks reasonably priced, but it needs a
rest." 
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 48.31 points, or 0.34 percent, at 14,259.62.
    Nine of the 10 main sectors on the index were in the red.
    Financials, the index's most heavily weighted sector, gave
back 0.7 percent. Toronto-Dominion Bank lost 0.3 percent
to C$50.83, and Manulife Financial Corp shed 1.3
percent to C$20.03.
    Industrials slipped 0.8 percent, with Canadian Pacific
Railway Ltd falling 1 percent to C$157.10.
    Energy shares lost 0.2 percent despite gains in the price of
oil. Suncor Energy Inc was down 1 percent at C$39.29.
    ($1=$1.09 Canadian)

 (Editing by Peter Galloway)
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