CANADA STOCKS-TSX falls the most in seven months as tech shares slide

Reuters
Nov 14
CANADA STOCKS-TSX falls the most in seven months as tech shares slide

Updates after market close

By Fergal Smith

TORONTO, Nov 13 (Reuters) - Canada's main stock index posted its biggest decline in seven months on Thursday, with technology shares leading broad-based declines as the market pulled back from a record high.

The S&P/TSX composite index .GSPTSE ended down 573.94 points, or 1.9%, at 30,253.64, after posting a record high closing level on Wednesday.

"I think the fact that stocks are retreating from record highs has to do with renewed concerns about elevated valuations and Fed policy," said Angelo Kourkafas, a senior global investment strategist at Edward Jones.

Wall Street also ended sharply lower, with steep losses in Nvidia and other AI heavyweights, as investors scaled back expectations of Federal Reserve interest rate cuts due to inflation worries and divisions among central bankers about the U.S. economy's health.

The Toronto market's technology sector .SPTTTK fell 5.6%, with shares of electronic equipment firm Celestica Inc CLS.TO down 12.3%.

Shares of Northland Power Inc NPI.TO posted an even steeper decline, losing 27.2%, after the renewable electricity firm missed quarterly earnings estimates.

The utilities sector .GSPTTUT was down 1.5%. Materials .GSPTTMT, which includes metal mining shares, ended 2.1% lower as the price of gold XAU= fell.

"It's a sector that has been momentum driven and a lot of that is unwinding today," Kourkafas said.

Heavily weighted financials .SPTTFS dropped 1.6%, with shares of Brookfield Corp BN.TO falling 6.5% after the global investment firm reported quarterly results.

Manulife Financial MFC.TO beat analysts' quarterly profit estimates, boosted by strong business in Asia and Canada. Its shares rose 0.1% to notch another record closing high.

Linamar Corp LNR.TO was another bright spot, with its shares adding 5.3% after the auto parts maker beat third-quarter sales estimates.

(Reporting by Fergal Smith and Avinash P and Pranav Kashyap; Editing by Sahal Muhammed and Nia Williams)

((fergal.smith@thomsonreuters.com; +1 647 480 7446))

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