Canada Stocks: TSX retreats from record high as tech rout hits Wall Street

Celestica

17/07/2024 21:24

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      TSX ends down 0.6% at 22,851.17
    

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      Tech drops 2.9%, with Celestica down 10.1%
    

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      Materials group loses 1.4% as metal prices fall
    

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      Cogeco Communications jumps after analyst upgrade
    

  
 (Updates at market close)
    By Nikhil Sharma and Fergal Smith
       July 17 (Reuters) - Canada's main stock index ended its
record-setting run on Wednesday as metal mining and technology
shares fell, with the latter tracking a sharp selloff in
high-flying U.S. microchip names.
    The S&P/TSX composite index  .GSPTSE  ended down 144.22
points, or 0.6%, at 22,851.17, snapping a five-session winning
streak as well as a streak of four consecutive record closing
highs.
    "The gravitational pull of pressure on U.S. markets probably
spills over to Canada," said Brian Madden, chief investment
officer at First Avenue Investment Counsel.
    "The most approximate explanation is Democrat and Republican
voices talking tougher on China, particularly as it relates to
semiconductor chips."
    On Wall Street, the S&P 500 and the Nasdaq fell as the
prospect of tighter U.S. trade curbs on companies giving China
access to advanced semiconductor technology weighed down on
major chip and tech stocks. 
    The Toronto market's technology sector fell 2.9%, with
shares of electronics company Celestica  CLS.TO  tumbling 10.1%,
while shares of e-commerce company Shopify Inc  SHOP.TO  ended
6.9% lower.
    The materials sector, which includes metal miners and
fertilizer companies, lost 1.4% as gold and copper prices fell,
while energy was down 0.3% even as oil settled 2.6% higher at
$82.85 a barrel.
    Cogeco Communications Inc  CCA.TO  was a bright spot. Shares
of the telecommunications company rallied 10.0% after BofA
Global Research raised its rating and price objective on the
stock.

 (Reporting by Fergal Smith in Toronto and Nikhil Sharma in
Bengaluru; Editing by Shreya Biswas and Diane Craft)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))