Canada Stocks: TSX posts biggest decline in 3 weeks as bond yields climb

iA

27/07/2023 21:34

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      TSX ends down 0.9% at 20,385.47
    

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      Posts its biggest decline since July 6
    

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      Materials sector falls 1.8% on lower gold prices
    

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      Celestica jumps 9.3%
    

  
 (Updated at market close)
    By Fergal Smith
       July 27 (Reuters) - Canada's main stock index fell on
Thursday, including declines for gold mining shares, as a jump
in bond yields dashed optimism that a peak in borrowing costs
was at hand.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended down 176.17 points, or 0.9%, at 20,385.47, its
biggest decline since July 6.
    "It is on the back of bond yields rising," said Allan Small,
senior investment advisor of the Allan Small Financial Group
with iA Private Wealth.    
    Yields on Canadian government bonds and U.S. Treasuries
climbed after a slew of robust U.S. economic data and as the
European Central Bank raised interest rates for the ninth
consecutive time.
    The interest-sensitive real estate sector fell 2.3%, while
materials, which includes precious and base metals miners and
fertilizer companies, lost 1.8% as the price of gold fell.
    Utilities was also a drag, falling 1.1%.
    Still, the rise in yields was not seen as a game changer.
    "I don't think that (it) is any reason to panic. If this
pullback (in stocks) were to persist for a little while I think
it would be a buying opportunity," Small said.
    Celestica Inc  CLS.TO  was a bright spot. The electronics
company's shares rose 9.3% after quarterly results that beat
estimates.

 (Reporting by Fergal Smith in Toronto and Siddarth S in
Bengaluru; Editing by Shilpi Majumdar and Alistair Bell)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446;))