TSX dips as lower oil prices pressure energy shares
5:52 pm Wednesday, November 16th, 2022
By Fergal Smith
TORONTO (Reuters) – Canada’s main stock index fell on Wednesday as lower oil prices weighed on energy shares but gains for consumer-related stocks helped limit the index’s decline.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 36.82 points, or 0.2%, at 19,957.96.
Still, the index has gained 2.7% since the beginning of the month and is on track for its second straight month of gains as investors welcome signs of decade-high inflation cooling.
Data on Wednesday showed Canada’s annual inflation rate holding steady at 6.9% in October, matching analyst forecasts, while core inflation measures were mixed, leaving markets betting on a smaller rate hike at the Bank of Canada’s next meeting.
The Toronto market’s energy sector fell 2.3% as oil prices settled 1.5% lower at $85.59 a barrel concerns over rising COVID-19 cases in China.
The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.3%, while technology ended 0.7% lower.
Consumer staples was a bright spot, rising 1.6%. It was helped by a gain of 2.3% for Loblaw Cos Ltd after the retailer raised its annual earnings forecast.
Shares of Restaurant Brands International Inc ended 7% higher, helping drive the consumer discretionary sector to a 1.3% gain.
Industrials also gained ground, rising 1.4%.
(Reporting by Fergal Smith; Additional reporting by Johann M Cherian in Bengaluru; Editing by Sandra Maler)
