The main Canadian stock market, which is heavily cyclical, slightly declined on Monday, led in particular by the technology sector. Escalation of the conflict in Iran and the end of the month approaching deterred investors from engaging in significant movements.
The S&P/TSX index of the Toronto Stock Exchange closed down by 25.71 points, or 0.1%, at 31,934.94 points. The index has dropped by 7% since the beginning of March, heading towards its first monthly decline in eleven months and its worst performance since June 2022.
“We are finishing a challenging quarter and a particularly difficult month; I think participants simply want to turn the page and see what spring has in store for us,” said Greg Taylor, Chief Investment Officer at PenderFund Capital Management. “The macroeconomic uncertainty is such that no one seems to have the necessary conviction to make significant directional bets.”
U.S. stock markets also weakened, with investors monitoring the impact of rising crude oil prices on the global economy since the start of hostilities.
The technology sector was the main drag on the Toronto market, with a decline of 1.4%.
The basic materials group, which includes mining stocks, ended down by 0.3%. The price of gold has risen but remains on track for a significant monthly correction.
Energy slipped by 0.5%, even though the price of a barrel of oil stabilized with a 3.25% increase to $102.88.
Air Canada CEO Michael Rousseau will retire by October, the airline announced, after sparking controversy for not offering condolences in French, one of Canada’s official languages, following an accident that claimed the lives of two pilots. Air Canada’s stock dropped by 2.2%.
Among the sectors that managed to register positive territory, consumer discretionary rose by 0.9%, while the utilities sector, known for its high dividends, gained 0.6% following a decrease in bond yields.
