(Adds investor quotes and details throughout; updates prices)
* TSX ends down 1.4%
* Posts its lowest closing level since Sept. 20
* Technology shares fall the most since last November
* Kirkland Lake Gold Ltd ends 7.4% lower
TORONTO, Sept 28 (Reuters) - Canada's main stock index on
Tuesday fell to its lowest level in more than one week as rising
global bond yields encouraged investors to sell the shares of
technology companies in favor of sectors more sensitive to the
The Toronto Stock Exchange's S&P/TSX composite index
ended down 289.28 points, or 1.4%, at 20,174.14, its
lowest closing level since Sept. 20.
"Technology is taking the brunt of the down move in both
Canada and the U.S.," said Mike Archibald, a portfolio manager
at AGF Investments.
"You've seen a pretty significant move up in 10-year yields
globally in the last several days and that's really driving a
change in investor preferences to more economically sensitive
parts of the market."
The information technology group lost 3.8%, its
biggest decline since last November, as the U.S. 10-year yield
climbed to its highest level since June at 1.567%.
Shares of Shopify Inc, the company with the
highest market value on the TSX, ended 4.8% lower.
Higher yields reduce the value of future cash flows so they
particularly hurt the shares of companies with high growth
Canada's benchmark stock index is down about 2% so far in
September after seven consecutive monthly gains.
Kirkland Lake Gold Ltd fell 7.4% after Agnico Eagle
Mines Ltd agreed to buy the miner in a stock deal
valued at C$13.51 billion ($10.68 billion).
The materials group, which includes precious and
base metals miners and fertilizer companies, lost 0.9%, while
energy was nearly unchanged.
U.S. crude oil futures climbed to the highest level
since July before settling down 0.2%.
(Reporting by Fergal Smith; Additional reporting by Amal S in
Editing by Marguerita Choy)