Technical issue shuts TSX, closes in black

TORONTO — Canada’s main stock index was shut down early Friday afternoon after technical issues prevented users from accessing the Toronto Stock Exchange, while U.S. markets were mixed.

Before an “internal technical issue” prompted the TMX Group to shut down its exchanges at 3 p.m., the latest data reading at 1:39 p.m. showed the S&P/TSX was up 31.34 points to 15,668.93. Canada’s biggest exchange operator said it planned to release updated closing prices later.

Kash Pashootan, CEO and chief investment officer of First Avenue Investment Counsel, said in his 20-year career this kind of shutdown was “rare” to see.

“It’s premature to really assess what this means, but certainly it’s not an everyday occurrence,” he said in an interview. “And that in itself will raise questions.”

The TMX Group said in a statement it had identified the issue and was working to fix it, and expects to resume trading on Monday.

U.S. markets were flat despite strong earnings including from Amazon, whose shares surged to an all-time high on the ecommerce giant’s better-than-expected results. Amazon shares later closed up 3.6 per cent to $1,572.62 on the Nasdaq.

In New York, the Dow Jones industrial average closed down 11.15 points to 24,311.19. The S&P 500 index closed up 2.97 points to 2,669.91 and the Nasdaq composite index closed up 1.12 points to 7,119.80.

Earnings season is halfway through and has produced robust results, but it has not been reflected in the equity markets, said Pashootan. “You’re seeing the market take a cautious approach to share price appreciation, despite the fact that the numbers have been strong,” he said. “That speaks to the fact that there is more concern in the market for some of the variables that can cause a selloff.”

He said concerns include the 10-year treasury yield creeping above the psychological level of three per cent earlier this week, which spooked investors, before retreating slightly toward the end of the week.

The competition between stocks and bonds is heating up, he added, while geopolitical concerns continue to stoke concern.

“Some new risks, many old risks, but the market is taking a more wait-and-see approach than it has in previous years,” Pashootan said.

The Canadian dollar was trading at 77.78 cents US, up 0.03 of a US cent.

The June crude contract was down nine cents to US$68.10 per barrel and the June natural gas contract was down 7 cents to US$2.77 per mmBTU.

The June gold contract was up US$5.50 to US$1,323.40 an ounce and the July copper contract was down 7 cents to US$3.07 a pound.