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TSX ends down 262.60 points, or 1.3%, at 20,252.64
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Posts its lowest closing level since Jan. 12
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All ten major sectors end lower
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Domestic inflation eases in January
(Adds details throughout, updates prices to close)
By Shristi Achar A and Fergal Smith
Feb 21 (Reuters) - Canada's main stock index fell on Tuesday to its
lowest closing level in nearly six weeks, with the technology and financial
sectors at the forefront of broad-based declines as weak sentiment on Wall
Street overshadowed domestic data showing an easing of inflation pressures.
The Toronto Stock Exchange's S&P/TSX composite index ended down
262.6 points, or 1.3%, at 20,252.64, its biggest decline since Dec. 15 and its
lowest closing level since Jan. 12.
Wall Street benchmark indexes also tumbled after data showing a rebound in
business activity in February stoked fears that the U.S. Federal Reserve might
need to hike interest rates by more than expected to control inflation.
Canada's consumer price index report was more encouraging for investors. It
showed the annual rate of inflation easing more than expected to 5.9% in
January.
"Canadian inflation numbers were surprisingly positive given the
overwhelming negativity surrounding inflation and rising interest rates," said
Brandon Michael, a senior analyst at ABC Funds in Toronto.
"It gives the Bank of Canada the ability to continue with their plans to
pause this rate hiking cycle at their next meeting in March."
Money markets expect the BoC to hold its benchmark rate steady at 4.50% on
March 8. The Toronto market's technology sector fell 1.9% as bond yields globally
climbed. Higher interest rates reduce the value to investors of the future cash
flows that technology companies are expected to produce.
Heavily weighted financials lost 1.4%, while the other eight major sectors
also ended lower.
Teck Resources Ltd shares slipped 1.3% as the mining company
posted lower-than-estimated fourth-quarter profit and said it would spin off its
steelmaking coal unit.
Suncor Energy Inc was a bright spot. Its shares gained 1.9% after
the company named Rich Kruger chief executive officer, effective April 3.
(Reporting by Shristi Achar A in Bengaluru and Fergal Smith in Toronto
Editing by Shailesh Kuber and Matthew Lewis)
