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CANADA STOCKS-TSX posts second straight weekly gain as market shows resilience

By Reuters News
The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019. REUTERS/Chris Helgren

By Fergal Smith

TORONTO, Nov 13 (Reuters) - Canada's main stock index ended lower on Friday as technology shares fell, but the index still notched a weekly gain as recent strength in corporate profits offset worries about higher interest rates to tackle inflation.

The S&P/TSX Composite Index .GSPTSE ended down 31.29 points, or 0.1%, at 36,105.90. For the week, the index gained 0.9%, its second straight weekly advance.

  • US stocks posted steeper declines on Friday as concerns about Nvidia NVDA.O pressured technology shares, while a reading on inflation failed to alter expectations for more rate hikes from the Federal Reserve.

  • "It's a mixed day, ending an up-week. So that theme of resilience continues," said Angelo Kourkafas, senior global investment strategist at Edward Jones. "We have corporate profits which continue to exceed expectations ... That is helping to provide a significant offset to a lot of the concerns about AI, technology and inflation."

  • Economists expect Canada's consumer price index report for October, due on Monday, to show inflation rising to an annual rate of 3.2%.

  • "If there are any takeaways from this week's US inflation data is that there are some lingering pressures, (and) that policymakers are running out of patience," Kourkafas said.

  • Investors see a 64% chance the Bank of Canada will raise interest rates in December.

  • The TSX's technology sector .SPTTTK fell 1.3%, with shares of electronic equipment company Celestica CLS.TO down 5.4%.

  • Heavily weighted financials .SPTTFS and the materials group, which includes metal mining shares, posted declines of 0.2% and 0.6% respectively. The price of copper was down 2%.

  • Most other sectors notched gains, including energy, which added 0.9%.

  • US crude oil futures settled 0.2% lower and posted their second straight weekly decline, as signs of a growing global supply surplus weighed on the market.

  • The consumer staples sector .GSPTTCS rose 0.8%, while industrials .GSPTTIN ended 0.2% higher, led by Stantec STN.TO.

  • Shares of the engineering company rose 13.8% after third-quarter revenue and adjusted profit beat estimates.

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