Canada’s main stock index ended lower on Monday, consolidating this month’s gains, as oil prices fell and despite upbeat holiday sales data boosting the shares of e-commerce company Shopify. – Reuters.
The S&P/TSX composite index of the Toronto stock exchange finished down by 70.45 points, or 0.4%, at 20,032.66, which is the lowest closing level since 14th November.
Yet, it has profited 6.1% since the beginning of the month.
“We have seen a month with a sizable rally in both stocks and bonds so it is not surprising at this moment to take a breather,” said the senior investment strategist at Edward Jones, Angelo Kourkafas.
The energy sector also dropped by 1.6% as the oil had settled 0.9% lower at $74.86 per barrel beyond an OPEC+ meeting this week.
Financials had also lost ground by dropping 0.4%, as the investors waited for the beginning of the earning season of the bank on Tuesday. The big banks in Canada are most likely to wrap up the challenging financial year with yet another quarter of dropping profits and increasing bad debt provisions despite a slowing economy.
Technology, however, was an optimistic spot, adding 1.6%. It was controlled by a profit of 4.4% for Shopify Inc. after the company had reported a record of Black Friday data for sales.
“Looking at some early data points, spending is going to reach record levels during this holiday season,” Kourkafas said. “It is consistent with the theme of consumer resiliency that’s kept the economy out of recession this year.”
Data on Friday showed an unimaginable strength in the retail sales in Canada.
The material industry, which is a house to valuable and base metal miners and fertilizer-based companies, had also added ground. It had increased by 0.3% as the price of gold had increased by 0.6% to approximately $2,014 for an ounce in spite of the extra pressure of the shares for First Quantum Minerals.