By Fergal Smith
(Reuters) -Canada’s main stock index fell on Tuesday as a drop in oil prices weighed on energy shares, but the move was limited ahead of a potential interest rate cut by the Bank of Canada.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 58.9 points, or 0.3%, at 22,813.75, giving back part of the previous day’s gain.
“It’s hanging in” despite declines for some major sectors, said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth.
The two heaviest weighed sectors on the TSX, financials and energy, lost 0.2% and 1.4% respectively.
Energy fell as the price of oil dropped to a six-week low, settling down 1.8% at $79.96 a barrel, on rising expectations of a ceasefire in Gaza and growing demand concerns in China. [O/R]
The Bank of Canada is widely expected to cut its benchmark interest rate by 25 basis points to 4.50% on Wednesday, its second cut in as many months, after recent data showed inflation easing.
“The big day is tomorrow with respect to interest rates and that could move the bank stocks,” Small said, adding that lenders could benefit from increased economic activity as borrowing costs fall.
Bank of Nova Scotia has appointed Anique Asher as its chief strategy and operating officer, the latest senior level move under CEO Scott Thomson who took charge early last year. Its shares were down 0.8%.
Industrials were also a drag, falling 0.8% but most other sectors ended higher, including a gain of 0.5% for technology.
(Reporting by Fergal Smith in Toronto and Nikhil Sharma in Bengaluru; Editing by Marguerita Choy)
