Canada stocks add to weekly decline as financials retreat

Canada’s main stock index on Friday fell for a fourth day as declines for the financial services and industrial sectors offset gains for uranium shares, with investors bracing for a seasonally weak period for the market.

The Toronto Stock Exchange’s S&P/TSX composite index ended down 72.21 points, or 0.4 per cent, at 20,633.06, extending a string of declines since Tuesday when the market notched a record intraday high of 20,897.57.

For the week, the TSX was down 0.9 per cent “I think we are taking a pause,” said Michael Sprung, president at Sprung Investment Management. “We are also coming into a season where we often see seasonal weakness in the market.”

The financial services sector, which accounts for about 30 per cent of the Toronto market’s valuation, and the industrials group both fell 0.3 per cent.

The materials group, which includes precious and base metals miners and fertilizer companies, was down 0.7 per cent as gold prices fell but shares of uranium producers added to recent gains.

“There are funds targeting the uranium market to try and corner the market, which is creating a short squeeze with limited supply of uranium on the open market,” said Matt Manara, a portfolio manager at Avenue Investment Management.

Cameco Corp shares rose to the highest since March 2011, ending up 6.8 per cent, while Denison Mines Corp advanced 11.2 per cent.

Data showed that Canada’s economy posted strong jobs growth in August and the unemployment rate fell to its lowest point since the onset of the coronavirus pandemic, which could boost Prime Minister Justin Trudeau’s hopes for reelection later this month.