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CANADA STOCKS-Toronto market edges off record high as oil prices drop
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CANADA STOCKS-Toronto market edges off record high as oil prices drop
Aug 28, 2024 2:10 AM

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TSX ends down 0.4% at 23,259.96

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BMO shares slide fall 6.5% after earnings miss

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Energy loses 2%; oil settles 2.4% lower

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Real estate rises 1%, hitting an 18-month high

(Updates at market close)

By Nikhil Sharma and Fergal Smith

Aug 27 (Reuters) - Canada's main stock index ended lower

on Tuesday, pulling back from a record high, as a drop in oil

prices weighed on the energy sector and investors weighed

prospects for bank earnings after mixed results from some of

Canada's major lenders.

The Toronto Stock Exchange's S&P/TSX composite index

ended down 89.01 points, or 0.4%, at 23,259.96, after

posting a record closing high on Monday.

"There's more likely downside pressure for bank earnings

moving forward with a slowing Canadian economy as consumers seem

to be tapped out at this moment," said Macan Nia, co-chief

investment strategist at Manulife Investment Management.

Canadian gross domestic data, due on Friday, is expected to

show the economy growing in the second quarter at an annualized

rate of 1.6%, which is below the roughly 2.4% rate that Canada's

central bank estimates for potential growth.

Bank of Montreal ( BERZ ) shares fell 6.5% after the lender

reported lower-than-expected profit, warning it would need to

continue to set aside money for loans that are unlikely to be

repaid.

Shares of Bank of Nova Scotia ( BNS ) fared better, rising

2.5%, after the bank beat analysts' profit estimates.

The energy sector was down 2% as the price of oil

settled 2.4% lower at $75.53 a barrel on worries that slower

economic growth in the U.S. and China could reduce demand for

energy.

The materials group, which includes metal miners and

fertilizer companies, also ended lower, falling 0.7%.

Real estate was a standout. The sector, which could

particularly benefit from recent declines in borrowing costs,

rose 1% to trade at its highest level since February 2023.

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