TSX ends down 10.61 points, or 0.1%, at 20,740.44
Energy falls 2.8%; oil settles 0.7% lower
Canada Goose tumbles 23.7%
Technology rallies 2.2%
Feb 2 (Reuters) - Canada's main stock index edged lower
on Thursday as losses in commodity-linked stocks offset gains in
technology, while Canada Goose's shares crumbled after the
luxury goods maker cut its full-year forecast.
The Toronto Stock Exchange's S&P/TSX composite index
ended down 10.61 points, or 0.1%, at 20,740.44. It was
the index's second straight day of modest losses after posting
on Tuesday its highest closing level in nearly eight months.
"We wouldn't be surprised to see some back and fill of
overbought levels but we are constructive intermediate term,"
said Joseph Abramson, co-chief investment officer at Northland
"I think you've seen the peak of the valuation compression
because we think that interest rate expectations have peaked
both in Canada and the U.S."
Global central banks that raced to raise interest rates last
year amid soaring inflation are now laying the groundwork in
unison for a pause that, while not yet promised, is coming into
view for later this year.
The Bank of Canada has already signaled a pause, after it
hiked its benchmark interest rate last week to a 15-year high of
"Earnings are going to be weak for a little while but most
of that has been discounted," Abramson said.
The energy sector fell 2.8% as oil futures settled
0.7% lower at $75.88 a barrel, while the materials group, which
includes precious and base metals miners and fertilizer
companies, was down 1.9%.
Shares of Canada Goose Holdings Inc tumbled 23.7%.
The company trimmed its full-year revenue and profit forecasts
after COVID-19 disruptions weighed on sales of its parkas and
jackets in China during the third quarter.
The technology sector helped cap the TSX's decline. It ended
2.2% higher, adding to its recent gains.
Industrials were also a bright spot, rising 1%, and
heavily-weighted financials were up 0.6%.
(Reporting by Fergal Smith; Additional reporting by Shashwat
Chauhan in Bengaluru; Editing by Marguerita Choy and Shailesh