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TSX ends down 0.2%
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For February, the index loses 2.6%Bank of Montreal, Bank
of Nova
Scotia fall on earnings
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Baytex Energy slides on deal to buy Ranger Oil
(Adds investor quotes and details throughout, updates prices)
By Fergal Smith
Feb 28 (Reuters) - Canada's benchmark stock index edged
lower on Tuesday, adding to its monthly decline, as domestic
data showed the economy stalling in the fourth quarter and two
top lenders pointed to economic pain ahead.
The Toronto Stock Exchange's S&P/TSX composite index ended down 38.94 points, or 0.2%, at 20,221.19.
For the month, it lost 2.6%, giving back some of its January
gain, as investors worried that the Federal Reserve would raise
interest rates higher than previously thought.
"It feels like markets in general are just trying to hang on
for month-end," said Greg Taylor, a portfolio manager at Purpose
Investments.
"The banks were a little disappointing this morning ... I think that's acting as a drag on the markets overall and people are getting nervous heading into March with a lot of big economic data events coming up." The Bank of Canada is due to make an interest rate decision on March 8, while Canadian and U.S. employment data is due two days later. The Canadian economy unexpectedly stalled in the final three months of 2022, but likely rebounded in January, data showed on Tuesday.
Shares of Bank of Nova Scotia tumbled 5.7% and Bank of Montreal ended 1.2% lower after the two banks stockpiled rainy-day funds and reported a fall in first-quarter profit.
"Banks are preparing for a more challenging macroeconomic environment and the earnings that we saw are guiding towards some clouds on the horizon," said Angelo Kourkafas, investment strategist at Edward Jones Investments. The heavily-weighted financials sector fell 0.4%, while energy ended nearly 1% lower. Baytex Energy Corp slumped 9.8% after the oil and gas producer agreed to buy U.S. peer Ranger Oil Corp for $2.5 billion. (Reporting by Fergal Smith; Additional reporting by Johann M Cherian in Bengaluru; Editing by Sriraj Kalluvila and Alistair Bell)
