TSX ends three-day winning streak to start June despite rising crude

TSX ends three-day winning streak to start June despite rising crude

TSX ends three-day winning streak to start June despite rising crude

TORONTO — Canada’s main stock index ended a three-day winning streak despite crude oil futures closing at a three-month high.

The S&P/TSX composite index closed down 47.24 points at 15,527.87, which is still up 2.2 per cent for the week.

In New York, the Dow Jones industrial average was up 11.93 points at 26,281.82. The S&P 500 index was down 10.52 points at 3,112.35, while the Nasdaq composite was down 67.10 points at 9,615.81.

“I still think the bias of this market is going to be to grind higher. But you’re probably going to get days like this where you just get a little bit of consolidation after a couple of really strong days,” said Mike Archibald, vice-president and portfolio manager with AGF Investments Inc.

The positioning in the markets is very defensive even though markets are down as sectors that have been “massive laggards,” such as energy, financials and REITs, outperformed on the day compared with technology and consumer staples, he said.

“So all the parts of the market that had sort of been left for dead as the market was recovering from the March lows or what you were sort of terming the reopening portfolio of sectors is really acting quite well,” he said.

Real estate and energy were the leading sectors on the day.

Energy gained 1.4 per cent as Secure Energy Services Inc. surged 28 per cent while exploration names such as Vermilion Energy Inc., Baytex Energy Corp. and Suncor Inc. were up 4.8, 4.7 and 2.3 per cent respectively.

The July crude contract was up 12 cents at US$37.41 per barrel and the July natural gas contract was up 0.1 of a cent at US$1.82 per mmBTU.

The strong performance by exploration companies indicates that the market is looking forward to a potential deal by OPEC and Russia to extend production cuts, Archibald said.

“If you get positive news out of OPEC, energy has room to continue to move higher.”

The Canadian dollar traded for 74.03 cents US compared with 74.05 cents US on Wednesday.

Materials also increased as the price of gold rose. The August gold contract was up US$22.60 at US$1,727.40 an ounce and the July copper contract was up 0.2 of a cent at just under US$2.49 a pound.

Consumer staples, technology and consumer discretionary were the biggest laggards on the day.

The consumer sectors fell as shares of Alimentation Couche-Tard Inc., Saputo Inc. and Canadian Tire Inc. decreased 2.1 to four per cent.

Technology dropped 1.6 per cent as Shopify Inc. was the worst performer on the TSX, losing 3.6 per cent, or $36.78, to $992.55.

The Ottawa-based technology provider has lost its bragging rights as Canada’s most valuable company by market capitalization with the Royal Bank of Canada regaining the top spot.

Contributing to Shopify’s softness is the shift away from technology while some investors sold shares to crystallize profits.

Still, Archibald said the company hit a home run for most of 2020 as it surged from $500 to start the year to hit a high of $1,200 per share despite a 30 per cent market pullback.

“I think Shopify will probably be Canada’s largest company again,” he said.

“That may not happen in the very near term. It has a lot of good things going for it in terms of the types of names that I think are going to be long-term winners in Canada.”

Industrials also lost some ground, but Air Canada shares gained 5.7 per cent after American Airlines said it would increase its July capacity by 74 per cent.

The announcement supports the idea that economic reopenings will help travel companies like Air Canada, which cut its capacity by 90 per cent for March and April because of COVID-19.

This report by The Canadian Press was first published June 4, 2020.

Companies in this story: (TSX:SHOP, TSX:AC, TSX:SES, TSX:VET, TSX:BTE, TSX:SU, TSX:ATD.B, TSX:SAP, TSX:CTC, TSX:GSPTSE, TSX:CADUSD=X)

Ross Marowits, The Canadian Press

Business

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

(Photo Courtesy of Red Deer Catholic Regional Schools)
Red Deer Catholic Regional Schools will not pilot draft curriculum

RDCRS is one of many divisions in the area to opt out of the pilot of the K-6 draft curriculum

Pay parking station on 50A Street in Sylvan Lake. (File Photo)
Resident Parking program returns to Sylvan Lake this weekend

The programs runs from May 15 to Sept. 15 every year

Supporters gather during a rally against measures taken by government and health authorities to curb the spread of COVID-19 at the Whistle Stop cafe in Mirror Alta, on Saturday May 8, 2021. The Whistle Stop was shut down by AHS for not complying with COVID-19 rules. THE CANADIAN PRESS/Jason Franson
Police hand out tickets to dozens leaving anti-lockdown protest in Alberta

Hundreds gathered outside the Whistle Stop Café in the hamlet of Mirror, Alta.

Alberta’s environment department has known for years that toxins from old coal mines are contaminating populations of the province’s official animal, the bighorn sheep. THE CANADIAN PRESS/Craig Bihrl
Alberta government knew bighorn sheep contaminated with coal mine selenium, scientist says

Jeff Kneteman says Alberta Environment has known about the problem in bighorn sheep for years

Prime Minister Justin Trudeau receives his COVID-19 AstraZeneca vaccination in Ottawa, Friday, April 23, 2021. THE CANADIAN PRESS/Adrian Wyld
75% of Canadians need 1st vaccine dose to have more normal summer: Trudeau

The country is on track to hit a major milestone on the road to COVID-19 herd immunity Tuesday, with 40% vaccinated with a 1st dose

A vial of the AstraZeneca COVID-19 vaccine.THE CANADIAN PRESS/Carlos Osorio
Alberta to stop giving first doses of AstraZeneca COVID-19 shot as supply dwindles

There aren’t any confirmed shipments of AstraZeneca coming, and the province only has 8,400 doses of it left

Winnipeg Jets’ Andrew Copp (9) and Edmonton Oilers goaltender Mike Smith (41) watch an incoming shot during second period NHL action in Winnipeg, Monday, April 26, 2021. THE CANADIAN PRESS/Fred Greenslade
‘Very jealous’: Canadian teams can’t take advantage of NHL’s relaxed COVID-19 rules

League eased some tight COVID-19 health and safety protocols over the weekend for fully vaccinated clubs

File photo
Arrest made for armed robbery in Millet, Wetaskiwin RCMP continue to investigate

Wetaskiwin RCMP are investigating an armed robbery took place May 4, 2021 in Millet, Alta.

Dr. Karina Pillay, former mayor of Slave Lake, Alta., is shown at her medical clinic in Calgary on Friday, April 16, 2021. THE CANADIAN PRESS/Jeff McIntosh
10 years later: Former Slave Lake mayor remembers wildfire that burned through town

Alberta announced in 2011 that an unknown arsonist had recklessly or deliberately ignited the forest fire

The body of Brenda Ware, 35, was found along Highway 93 in Kootenay National Park on Thursday, May 6, 2021. (RCMP handout)
RCMP ask for tips after woman travelling from Alberta found dead in B.C. park

Brenda Ware was found along Highway 93 in the park, 54 kilometres north of the town of Radium

A caribou grazes on Baffin Island in a 2008 file photo. A last-ditch attempt to save some of Canada’s vanishing caribou herds is a step closer after a scientific review panel’s approval of a plan to permanently pen some animals and breed them to repopulate other herds. THE CANADIAN PRESS/AP-Kike Calvo via AP Images
Parks Canada captive caribou breeding proposal gets OK from scientific review panel

Wolf density in Jasper is low enough that the animals would not be expected to be a major threat

Most Read