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Bank of Montreal, Bank of Nova Scotia slide on poor results
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Restaurant Brands drops on pricing secondary offering
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Baytex Energy slumps on deal to buy Ranger Oil
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TSX falls about 0.2%
By Johann M Cherian Feb 28 (Reuters) - Canada's benchmark stock index fell on Tuesday, led by financials after two top lenders pointed to economic pain ahead with higher loan loss provisions and a fall in quarterly profits. Bank of Nova Scotia tumbled 5% and Bank of Montreal fell 1.4%, fueling a 0.6% slump in the dominant financials sector . The sector was set for a 1% monthly decline
At 10:26 a.m. ET (1526 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 35.1 points, or 0.17%, at 20,225.03. "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.
Meanwhile, data showed that the economy contracted 0.1% in December from the previous month, below what analysts polled by Reuters were expecting. Although a rebound in risk-sentiment at the turn of the year prompted hopes of recovery in markets, TSX is set for its first February losses in two years, down 2.8%, as investors feared that the U.S. Federal Reserve would stick to its hawkish stance on monetary tightening.
Baytex Energy Corp slumped 7.6% after the oil and gas producer agreed to buy U.S. peer Ranger Oil Corp for $2.5 billion.
Restaurants Brands International slid 0.7% after the Burger King owner priced its secondary offering lower than the stock's last close on Monday. Africa Oil Corp slumped 10.9% to the bottom of the index after reporting a quarterly loss. ($1 = 1.3575 Canadian dollars) <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Canadian sectors in February ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Johann M Cherian in Bengaluru; Editing by Sriraj Kalluvila)
