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TSX ends down 0.5% at 25,274.30
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Posts its lowest closing level since Nov. 20
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Materials group loses 1.7% as metal prices fall
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Enghouse Systems ( EGHSF ) falls 12.9% after revenue miss
(Updates at market close)
By Fergal Smith
Dec 13 (Reuters) - Canada's main stock index fell to a
three-week low on Friday as a drop in metal prices weighed on
the materials sector, with the market giving back some of the
robust gains accumulated since the U.S. presidential election.
The Toronto Stock Exchange's S&P/TSX composite index
ended down 136.41 points, or 0.5%, at 25,274.30, its
lowest closing level since Nov. 20.
For the week, the TSX was down 1.6%, after posting five
straight weekly gains. It notched a record high earlier this
month and has gained 4.6% since the beginning of November.
"We have been running a very strong month following the U.S.
presidential election and this mean reversion that we're seeing
in broad indices is not out of the ordinary," said Sid Mokhtari,
chief market technician for CIBC Capital Markets.
"For Canada, I would say we probably are going to stay range
bound for a little longer until we go into the inauguration in
the U.S. and we see what kind of tariff threats we may get from
the U.S. side."
The inauguration of Donald Trump as U.S. president is set to
take place on Jan. 20. Trump has vowed to impose a 25% tariff on
imports from Canada and Mexico as one of his first executive
orders.
Canada will respond robustly if the United States imposes
unjustified tariffs on Canadian exports, Finance Minister
Chrystia Freeland said.
The materials group, which includes fertilizer companies and
metal mining shares, fell 1.7%, extending its losses from the
previous day, as gold and copper prices declined.
Energy fell 0.5% and industrials were down 0.7%.
Shares of Enghouse Systems Ltd ( EGHSF ) tumbled 12.9% after
the software solutions firm missed fourth-quarter revenue
estimates.
Nine of 10 major sectors posted declines. The exception was
technology which was aided by a 9.1% gain for electronics firm
Celestica Inc. ( CLS )