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CANADA STOCKS-TSX hits a 2-week low on widespread sell-off
February 24, 2017 / 4:31 PM / 10 months ago

CANADA STOCKS-TSX hits a 2-week low on widespread sell-off

(Adds details throughout on stocks and sectors and updates prices)

* TSX falls 167.07 points, or 1.06 percent, to 15,614.13

* All of the TSX’s 10 main groups retreat

* Energy falls more than 2 percent

TORONTO, Feb 24 (Reuters) - Canada’s main stock index hit a two-week low in Friday, extending its pullback from a record high in a broad-based sell-off that included losses for its heavyweight energy and financial services groups as oil prices fell.

At 10:50 a.m. ET (1550 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 167.07 points, or 1.06 percent, at 15,614.13. All of the index’s 10 main groups were lower.

For the week, the index was on track to fall 1.4 percent, the most since before the U.S. presidential election in early November, while stocks on Wall Street also declined on Friday as investors assessed whether the “Trump rally” had gone too far too soon.

Royal Bank of Canada reported quarterly earnings of more than C$3 billion for the first time, beating market forecasts.

Still, its shares fell 0.9 percent to C$97.38, and the financial services sector retreated 0.8 percent.

Auto parts maker Magna International Inc tumbled 5.5 percent to C$55.92 after it reported a lower-than-expected quarterly profit as costs rose.

Husky Energy Inc fell 2.5 percent to C$15.99 even as the oil producer reported a smaller-than-expected quarterly loss.

The energy group tumbled more than 2 percent as oil prices fell, with Suncor Energy Inc declining 2.7 percent to C$41.69.

U.S. crude prices were down 0.50 percent at $54.18 a barrel after inventories rose for the seventh week.

In an interview with Reuters on Thursday, U.S. President Donald Trump spoke favorably about a potentially export-boosting border adjustment tax being pushed by Republicans in the U.S. Congress.

Investors worry that the border tax would reduce the competitiveness of Canada’s oil exports.

Canada’s MacDonald Dettwiler and Associates Ltd said it would buy U.S.-based DigitalGlobe Inc for about C$3.10 billion to strengthen its position in the satellite imagery market.

Its shares tumbled 5.1 percent to C$65.50, while the industrials group declined 0.8 percent.

The materials group, which includes precious and base metal miners and fertilizer companies, fell 0.4 percent. Its losses were cushioned by gains for gold stocks as the metal climbed to its highest in 3-1/2 months.

Gold futures rose 0.2 percent to $1,252.6 an ounce, and copper prices advanced 1.5 percent to $5,949.5 a tonne.

Canada’s annual inflation rate jumped to a stronger-than-expected 2.1 percent in January, its highest in more than two years. (Reporting by Fergal Smith; Editing by Lisa Von Ahn)

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