Canada Stocks: Mining shares drag as Toronto market falls for fourth day

Celestica

24/10/2024 21:21

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      TSX ends down 0.1% at 24,551.55
    

        * 
      Materials sector falls 0.7%
    

        * 
      Teck Resources ends 5.4% lower
    

        * 
      Celestica jumps 18.3%
    

  
 (Updates to market close)
    By Fergal Smith
       Oct 24 (Reuters) - Canada's main stock index fell for
the fourth straight day on Thursday, weighed by declines for
utilities and metal mining shares, as investors assessed recent
increases in long-term borrowing costs and awaited corporate
earnings releases.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended down 22.07 points, or 0.1%, at 24,551.55,
extending its pullback from a record closing high on Friday. It
was the longest daily losing streak since September.
    "It's one of those weeks where no one is interested in
buying stocks," said Barry Schwartz, chief investment officer at
Baskin Wealth Management. "We're waiting for the earnings to
start to come out for the Canadian companies."
    Some of Canada's major energy companies, such as Canadian
Natural Resources Ltd  CNQ.TO , are due to report next week.
Bank earnings are due in December.    
    The materials sector, which includes fertilizer companies
and metal mining shares, fell 0.7% as Teck Resources Ltd beat
third-quarter profit estimates but cut its full-year copper
production forecast.
    Teck's shares lost 5.4%, while shares of Rogers
Communications  RCIb.TO  were down 1.6% as the company missed
market expectations for third-quarter wireless subscriber
additions.    
    "Although the short-end of the (interest) rate curve has
moved down, the long-end has moved up, so that's not helping the
dividend payers," Schwartz said.
    The Bank of Canada has cut its benchmark interest rate by
125 basis points since June to 3.75%, including a
larger-than-usual half-percentage-point reduction on Wednesday.
Still, Canadian bond yields have moved higher in recent weeks,
tracking an upward shift in U.S. rates.
    The utilities sector, which contains many high-dividend
paying stocks, was down 0.6%.
    In contrast, technology rose 1.3%, benefiting from an 18.3%
jump in the shares of Celestica Inc  CLS.TO  after the company
reported third-quarter results.

 (Reporting by Fergal Smith in Toronto and Nikhil Sharma in
Bengaluru; Editing by Vijay Kishore and Richard Chang)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))