Canada Stocks: TSX hits 3-week low on lower oil prices, election jitters

Labrador Iron Ore Royalty

17/09/2021 15:13

(Updates prices, adds comments)
    By Amal S
    Sept 17 (Reuters) - Canada's main stock index hit a
three-week low on Friday, weighed by energy and mining stocks,
as investors were cautious ahead of next week's federal
election.
    All eyes are on the outcome of next week's election called
by Canadian Prime Minister Justin Trudeau, seeking a
parliamentary majority after two years of a minority government.
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    "It looks like the market is assuming that one of the two
middle-of-the-road parties is going to win a minority, which
limits their ability to do things because they still have to
work with the other party," said Colin Cieszynski, chief market
strategist at SIA Wealth Management.
    "So unless we have a significant deviation from that, the
overall impact on the index is likely to be fairly limited."
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  dropped 0.36% to 20,528.24 by 9:45 a.m. ET, and was
set to post its second consecutive week of losses.
    "For Canada to see some weakness in September is not
unusual, given seasonal factors in global equity market trends
right now," Cieszynski added.    
    Persisting fears of slowdown in economic recovery amid
rising global COVID-19 cases has dented investors' appetite for
global equities in September after seven straight months of
gains.
    Among equities, the energy sector  .SPTTEN  dropped 1.5% as
crude prices fell, while the materials sector  .GSPTTMT  fell
1.1% after posting its worst session in two months on Thursday.
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    HIGHLIGHTS
    * Canadian National Railway Co  CNR.TO  gained 2.1% after
the railroad operator said it would resume a previously approved
share buyback, days after walking away from its $29.6-billion
deal for U.S. railroad operator Kansas City Southern  KSU.N .
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    * Miners Labrador Iron Ore Royalty Corp  LIF.TO  and Teck
Resources Ltd  TECKb.TO  were the biggest decliners on the
index, down 3.9% and 3.8%, respectively.
    * The TSX posted six new 52-week highs and three new lows.
    * Across all Canadian issues there were 13 new 52-week highs
and 12 new lows, with total volume of 135.04 million shares.

 (Reporting by Amal S in Bengaluru; Editing by Amy Caren Daniel)
 ((Amal.S@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 6749 3677;))