Mar­kets fall fur­ther


Canada’s main stock in­dex hit a six-month low Thurs­day while U.S. stock mar­kets suf­fered an­other sell­off day as in­vestors are pric­ing in po­lit­i­cal and trade un­cer­tain­ties they’ve long over­looked.

The re­sult is they have now wo­ken up to is­sues that have ex­isted for the last six to 12 months, says Kash Pashootan, CEO and chief in­vest­ment of­fi­cer at First Av­enue In­vest­ment Coun­sel Inc.

“The longer they shrug them off the more of a price we have to pay at some point,” he said in an in­ter­view.

“When you’re try­ing to price in un­cer­tain­ties that have ex­isted for six, 12, 18 months over four or five trad­ing ses­sions, of course you’re go­ing to feel that in the mar­kets.”

The S&P/TSX com­pos­ite in­dex closed down 200.27 points to 15,317.13, the low­est level since April with 389 mil­lion shares traded.

The 1.3 per cent sell­off came a day af­ter the TSX shed more than 330 points in the largest one-day de­cline in more than three years.

En­ergy posted the largest de­crease, fall­ing 3.37 per cent in a pull­back from steady gains. The Novem­ber crude con­tract was down US$2.20 at US$70.97 per bar­rel.

Gold stocks rose nearly eight per cent as the price of gold hit its high­est level since Au­gust as in­vestors sought a hedge against un­cer­tainty. The De­cem­ber gold con­tract was up US$34.20 at US$1,227.60 an ounce.

In New York, the Dow Jones in­dus­trial aver­age was down 545.91 points to 25,052.83 af­ter drop­ping more than 800 points on Wed­nes­day.

Pashootan says the hem­or­rhage likely hasn’t ended.

“I would not be sur­prised if we saw a 10 to 15 per cent cor­rec­tion in the mar­ket,” he said, not­ing that the S&P 500 had gone 74 con­sec­u­tive days with­out any plus or mi­nus move above one per cent.

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.