CANADA STOCKS-TSX loses ground for third day as 'fatigue' sets in

  • 9/9/2021
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(Adds details throughout and updates prices) * TSX ends down 0.2% * Industrials fall 1.1%; consumer staples end 1.2% lower * Technology advances 0.9% TORONTO, Sept 9 (Reuters) - Canada’s main stock index extended its pull back from a recent record high as shares of industrial and consumer staple companies declined, with investors turning more cautious as the market enters a seasonally soft patch.The Toronto Stock Exchange’s S&P/TSX composite index ended down 36.52 points, or 0.2%, at 20,705.27. The index notched on Tuesday a record intraday high of 20,897.57 before closing lower. It also lost ground on Wednesday. “Investor sentiment was running fairly hot in North American markets for almost all of 2021 and now we’re into a seasonal period that can be a little bit more challenging,” said Mike Archibald, portfolio manager at AGF Investments. “There is a little level of market fatigue here ... and there’s just probably a little reset that’s going to happen in the marketplace.” Shares on Wall Street also ended lower after economic data stoked worries the Fed could move sooner than expected to scale back its accommodative policies.Meanwhile, Bank of Canada Governor Tiff Macklem said the Canadian economy is moving closer to the point where the central bank will no longer need to continue adding stimulus through its quantitative easing program. Canada’s employment report for August due on Friday could provide further clues on the central bank’s policy outlook. The industrials sector fell 1.1%, including declines for railroad stocks, while the consumer staples group ended 1.2% lower. Information technology rallied 0.9% as bond yields fell. Lower rates help raise the value of future cash flows. (Additional reporting by Amal S in Bengaluru; editing by Diane Craft)

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