Canada Stocks: TSX down as technology stocks weigh on index

Alamos Gold

21/02/2024 21:43

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      TSX down 0.2% 
    

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      Technology shares plummet
    

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      iA Financial misses profit estimates; shares fall
    

  
 (Updates to close)
       Feb 21 (Reuters) - Canada's main stock index was dragged
down on Wednesday by a drop in rate-sensitive technology stocks,
as shares of the country's third biggest company, Shopify
 SHOP.TO , hit a six-week low and those of crypto miners fell. 
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  was down 45.15 points, or 0.2%, at 21,172.38.
    Technology stocks  .SPTTTK  led losses on the index with a
2.4% decline, dragged by crypto miners Hut 8  HUT.TO  and
Bitfarms  BITF.TO , down 3.9% and 7.0%, respectively, after
Bitcoin  BTC=  lost 2%. Shopify shares were down nearly 4% at
C$102. 
    In the United States, minutes from the Federal Reserve's
January meeting showed the majority of policymakers were
concerned about the risks of cutting interest rates too soon,
with broad uncertainty about how long borrowing costs should
remain at their current level.
    After the release of the minutes, traders stuck to bets the
Fed will begin cutting interest rates no earlier than June.
    "Tech stocks are down and because from a technical
perspective overall, there are definitely storm clouds,"
Selective Asset Management's Robert McWhirter said.
    The materials sector  .GSPTTMT , which includes Canadian
miners, extended declines to a third consecutive session after
it fell 0.9%. Gold miner Wheaton Precious Metals  WPM.TO  lost
the most among materials stocks, falling 8% after brokerages cut
price targets on the stock due to underwhelming 2024 production
forecast. 
    Insurance company iA Financial Corp  IAG.TO  plummeted 8.6%
to the bottom of the index after it reported its fourth-quarter
profit below analysts' estimates. The stock pulled heavyweight
financials  .SPTTFS  down 0.6%. 
    Canada's main stock index is set to notch a record high in
2025 as the expected start of interest rate cuts by central
banks bolsters the high-dividend paying stocks that make up much
of the market,  a Reuters poll found. 
    Among other stocks, shares of apparel-maker Gildan
Activewear  GIL.TO  climbed 3.7% after its fourth-quarter
results beat analysts' estimates.  

 (Reporting by Purvi Agarwal in Bengaluru and Nivedita Balu in
Toronto; Editing by Ravi Prakash Kumar and  Sandra Maler)
 ((Purvi.Agarwal@thomsonreuters.com;))