TSX ends five-day los­ing streak while U.S. mar­kets make up some losses

The Expositor (Brantford) - - BUSINESS - ROSS MAROW­ITS THE CANA­DIAN PRESS

TORONTO — Canada’s main stock in­dex snapped a five-day los­ing streak on Fri­day while U.S. mar­kets made up some of the lost ground on a re­cov­ery in tech stocks.

De­spite a strong U.S. econ­omy, many be­lieve in­vestors were spooked by the prospect of a se­ries of in­ter­est rate hikes, said Al­lan Small, se­nior in­vest­ment ad­viser with Hol­lisWealth.

“I think this is one huge over­re­ac­tion,” he said of the re­cent sell off.

“It’s go­ing to take a bunch of trad­ing days for us to make back what the losses have added up to over the past few days.”

The S&P/TSX com­pos­ite in­dex closed up 97.16 points to 15,414.29 af­ter shed­ding 754.92 points be­tween Oct. 4 and Thurs­day. The mar­ket hit a high of 15,470.88 on the day with 289.3 mil­lion shares traded.

The health care sec­tor led, ris­ing 4.24 per cent with a big push from cannabis pro­ducer Canopy Growth Corp. Ten of the mar­ket’s 13 sec­tors in­creased, while gold, ma­te­ri­als and base met­als were down slightly.

The lat­est sell off was smaller than the one ear­lier this year and Small said it could have been af­fected by sea­son­al­ity, with mar­kets typ­i­cally fall­ing in Oc­to­ber, and com­puter al­go­rithms that trig­gered sell­ing in af­ter­noon ses­sions.

“I think that this again will sub­side and I think the mar­ket will bounce higher. Hope­fully earn­ings sea­son will be the cat­a­lyst for that,” he said.

Still, Small ex­pects com­pa­nies will be­gin to note that tar­iffs are start­ing to eat into cor­po­rate profits.

In New York, the Dow Jones in­dus­trial av­er­age gained 287.16 points to 25,339.99 af­ter shed­ding 1,377.74 points in the last two days. The S&P 500 in­dex was up 38.76 points at 2,767.13, while the Nas­daq com­pos­ite rose 167.83 points to 7,496.89.

Small said peo­ple have got­ten too ac­cus­tomed to see­ing their port­fo­lios con­sis­tently rise and were lulled into a false sense of se­cu­rity.

“I think in­vestors in my opin­ion were start­ing to get a lit­tle bit greedy. They weren’t happy with the six, seven, eight, nine per cent rate of re­turn. They were chasing the hot in­vest­ment, the hot tech­nol­ogy stock, or cannabis stock.”

The Cana­dian dollar traded at an av­er­age of 76.74 cents US com­pared with an av­er­age of 76.70 cents US on Thurs­day.

The Novem­ber crude con­tract was up 37 cents at US$71.34 per bar­rel and the Novem­ber nat­u­ral gas con­tract was down 6.1 cents at US$3.16 per mmBTU.

The De­cem­ber gold con­tract was down US$5.60 at US$1,222 an ounce and the De­cem­ber cop­per con­tract was up 0.25 of a cent at US$2.80 a pound.

I think in­vestors in my opin­ion were start­ing to get a lit­tle bit greedy. They weren’t happy with the six, seven, eight, nine per cent rate of re­turn. They were chasing the hot in­vest­ment, the hot tech­nol­ogy stock, or cannabis stock.” Al­lan Small, se­nior in­vest­ment ad­viser with Hol­lisWealth

FILE PHOTO

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