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Publish Date: Wed, 25 Sep 2024, 11:16 AM
- TSX ends down 0.2% at 23,905.88
- Posts first decline in five sessions
- Energy falls 1.8%; oil settles 2.6% lower
- Lightspeed jumps 13.3% as company explores options
Sept 25 (Reuters) - Canada's main stock index ended lower on Wednesday as a drop in oil prices weighed on energy shares and investors took stock of recent gains for the index that had lifted it to an all-time high.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended down 46.34 points, or 0.2%, at 23,905.88, after four straight days of gains.
On Tuesday, the TSX posted a record closing high as China's stimulus package boosted investor sentiment globally.
"I don't think there is anything to be read into this tape. It is just a tape that's taking a breather and a bit more of a defensive tone," said Christine Tan, a portfolio manager at SLGI Asset Management Inc.
U.S. benchmark the S&P 500 also edged lower as investors awaited further economic indicators and signals on upcoming interest rate cuts. The Federal Reserve and the Bank of Canada have begun easing campaigns.
"Now that rates are starting to come down, I think investors are starting to think about the sectors that have lagged, sectors that are more economically sensitive," Tan said.
"Usually when central banks start to cut rates, at some point the economy starts to bottom out and starts to recover."
The energy sector fell 1.8% as the price of oil settled 2.6% lower at $69.69 a barrel on easing worries over supply disruptions in Libya.
Consumer discretionary fell 1.2%, weighed by a decline of 5.5% for the shares of Magna International (MG.TO) , opens new tab after Morgan Stanley downgraded the stock to "equal-weight" from "overweight". Industrials also lost ground, falling 0.6%.
Lightspeed Commerce Inc (LSPD.TO) , opens new tab was a bright spot. Shares of the payments software maker jumped 13.3% after sources told Reuters that the company is working with a financial adviser to explore options, including a potential sale.
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https://www.reuters.com/markets/tsx-futures-fall-china-stimulus-led-optimism-fades-2024-09-25/