TSX falls as weakness in commodities offsets gains in tech stocks

Kitco Media
By Reuters
Published:
Updated:
Reuters
TSX falls as weakness in commodities offsets gains in tech stocks teaser image

Feb 26 (Reuters) - Canada's resources-heavy index fell on Thursday as weakness in commodity-linked stocks outweighed gains in tech stocks driven by upbeat earnings from Salesforce.

The S&P/TSX composite index (.GSPTSE), was down 0.1% at 34,084.65 points as of 10:21 a.m. ET.

Worries over AI disruption faded, as shares of Salesforce (CRM.N), gained 3.5% after an upbeat first-quarter revenue forecast.

Tech stocks on TSX climbed 1.3%, leading the sectoral gains.

But shares of chip giant Nvidia (NVDA.O), dropped 3.6% as upbeat results did not do enough to impress investors.

Among banks in Canada, Royal Bank of Canada (RY.TO), shares fell 1.9%, even as the lender's fourth-quarter profit beat estimates, while CIBC (CM.TO), and Toronto Dominion Bank (TD.TO), gained 3.6% and 0.8% respectively after a rise in quarterly profit.

Trading in the broader financials subindex (.SPTTFS), opens new tab, weighted heaviest on the index, remained choppy. Stocks in the sector were down 0.02%.

"It will be difficult for banks to carry the higher multiple. They could face some headwinds this year, specifically with the uncertainty around the Canada-United States-Mexico (CUSMA) trade deal," said Michael Dehal, senior portfolio manager at Raymond James.

Energy shares (.SPTTEN), shed 0.3% as oil prices declined following the biggest jump in U.S. crude inventories in three years. The U.S. and Iran could reach a framework for a deal if Washington separates "nuclear and non-nuclear issues", a senior Iranian official said.

The global gold index (.SPTTGD), and the broader materials sector (.GSPTTMT), which includes metal miners, fell 0.9%, as gold prices eased, while silver prices dropped nearly 3%.

Healthcare shares (.GSPTTHC), were down 1.2%, the most on TSX.

Energy infrastructure firm Canadian Utilities' (CU.TO), shares fell 2.6% after reporting a decline in quarterly profit, sending utilities (.GSPTTUT), stocks down 0.1%.

Apparel maker Gildan's (GIL.TO), shares declined 5.5% after quarterly results. The broader consumer discretionary stocks (.GSPTTCD), dropped 0.3%.

Reporting by Utkarsh Tushar Hathi in Bengaluru; Editing by Leroy Leo and Sahal Muhammed

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.