Oct 18 Reuters - The main stock index of Canada fell on Monday from record highs in the previous session on the weakness in healthcare stocks fueled by pot producers and dour economic data from China.
ET 13: 42 GMT the Toronto Stock Exchange S&P TSX Composite index was down 53.03 points (or 0.25%) to 20,875 at 2061 today. 07, weighed down by a more than 1% slide in healthcare stocks.
Leading declines in the healthcare sub-sector index were pot producers Tilray Inc and Canopy Growth Corp, both down 1.9% and 1.8%, respectively.
The benchmark index hit a record high of 20,928. 10 on Friday, on the back of high oil prices and hopes for a seasonally strong period for the market.
The Canadian stocks also dipped in global equities on Monday after data showed slower growth than expected in China during the first quarter of the year before the data ended.
Gross domestic product in the Asian powerhouse grew 49% from one year earlier in July-September period, its weakest rate since the third quarter of 2020.
I think everyone is looking at Friday and wondering how much of the strength was made up by options expiring, and simply resetting, but also feels like a little bit of profit taking after some really dramatic record highs said Gregory Taylor, Portfolio manager at Purpose.
The materials industry, which includes precious and base metals miners and fertilizer companies, lost 0.7% as gold prices slipped on a stronger dollar and rising U.S. bond yields.
Limiting losses was the energy group, up 1.2%, extending its gains on oil prices for the third straight session and tracking its gains over 23%.
After snapping a seven-month winning streak in September, the Canadian equity index gained 4.3% in this month, boosted by strength of commodity prices and expectations for a steady economic recovery.
Housing starts fell 4.4% in September compared with the previous month as groundbreaking decreased on single unit and multiple community homes, data from the national housing agency showed.
Meanwhile, official data showed that Canadian investors bought a net C $26.30 billion $21.21 billion in foreign exchange in August, the most since April 2020.
The biggest decliner on the TSX included Hudbay Minerals Corp and Uranium miner Denison Mines Corp.
The TSX posted seven new 52 week highs and two new lows.