TSX hits one-week closing low dragged down by energy stocks

·1 min read
The facade of the original Toronto Stock Exchange building is seen in Toronto

By Maiya Keidan

TORONTO (Reuters) - Canada's main stock index fell to a one-week closing low on Friday, as energy stocks fell on concerns that fresh lockdown risks in Europe due to spike in coronavirus cases could slow oil demand.

The floods that caused widespread devastation in Canada's western province of British Columbia and cut off access to key infrastructure could further fuel inflation and weighed on sentiment, fund managers said.

The Toronto Stock Exchange's S&P/TSX composite index ended down 82.51 points, or 0.38%, at 21,555.03, its lowest close since Nov. 10.

Energy stocks sub-index fell 3.23%, with Cenovus Energy, down 4.7%, Vermilion Energy, losing 4.2%, and Enerplus Corp, declining 5.5%.

Oil prices fell below $80 a barrel on Friday, while the Dow Jones Industrial Average succumbed to its fourth losing session in the last five.

The financial services sector fell 0.26% and materials, including precious and base metal miners and fertilizer companies, dropped 0.89%.

Of the four TSX main groups to make gains on Friday, utilities and technology stocks led the way, rising 0.6% and 0.52% respectively.

Irwin Michael, portfolio manager at ABC Funds, said floods and mudslides that destroyed roads, houses and bridges in British Columbia were hitting the market.

"It's shutting down the mainland from the rest of the interior," he said. "There's concern that it could be inflationary as lumber prices probably go up because there's greater demand, particularly in Western Canada."

The index fall came despite better-than-expected retail data in September from Statistics Canada.

(Reporting by Maiya Keidan in Toronto and Sruthi Shankar in Bengaluru)

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