(Adds strategist quote and details throughout; updates prices)
TSX ends down 163.28 points, or 0.8%, at 20,220.49
Energy falls 1.7%
Materials sector loses 2.3%
Shopify gains 4.4%
TORONTO, Nov 28 (Reuters) - Canada's main stock index
fell on Monday, pulling back a 5-1/2-month high, as concern
about the economic impact of China's strict COVID-19 policies
put pressure on resource shares.
The Toronto Stock Exchange's S&P/TSX composite index
ended down 163.28 points, or 0.8%, at 20,220.49, after
posting on Friday its highest closing level since June 9.
"The impact of China's latest wave of lockdowns on the
domestic and global economy, including the demand for resources,
has attracted increased investor scrutiny," said Colin
Cieszynski, chief market strategist at SIA Wealth Management.
Wall Street stocks also tumbled after rare street protests
that erupted in cities across China over the weekend which were
seen as a referendum against President Xi Jinping's zero-COVID
The Toronto market's energy sector fell 1.7%, while the
materials group, which includes precious and base metals miners
and fertilizer companies, ended 2.3% lower.
Heavily-weighted financials also lost ground, falling 1.1%,
ahead of the start of bank earnings season on Tuesday.
Canada's Big Six banks are expected to post a 4% decline in
fourth-quarter profits from last year as choppy markets hurt
wealth management and a slow deal pipeline dents income from
"The wealth management business will be pressured but I
expect margin increases, given higher interest rates, and solid
balance sheets across the board," said Angelo Kourkafas,
investment strategist at Edward Jones Investments.
Not all sectors declined. Technology rose 0.8%, helped by a
gain of 4.4% for the shares of Shopify Inc after the company
announced record Cyber Monday sales in the United States.
Among other gainers was Bombardier Inc, with its
shares rising nearly 7% to its highest level since November
(Reporting by Fergal Smith; Additional reporting by Johann M
Cherian in Bengaluru; editing by Grant McCool)