Yahoo Finance CANADA STOCKS-TSX tumbles as commodity stocks weigh; Canadian Western Bank shines
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Canadian Western Bank up on brokerage upgrade
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Tech stocks climb, tracking U.S. rally
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TSX down 0.6%
By Johann M Cherian
May 30 (Reuters) - Canada's main stock index slid on Tuesday, weighed by losses in commodity-linked stocks and worries of an economic slowdown, while Canadian Western Bank surged on a brokerage upgrade.
At 10:15 a.m. ET (14:15 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 119.96 points, or 0.6%, at 19,847.99.
The energy sector fell 2.0% and weighed the most on the TSX, tracking declines in crude oil prices.
"Energy was one of the sectors that did well last year as many people thought that with what's going on in Russia and Ukraine, prices would skyrocket; and they did temporarily, no doubt," said Allan Small, senior investment advisor at Allan Small Financial Group.
"But that was overdone and now what's taken hold is this notion of global growth slowdown."
Canadian equities have a large commodity exposure and have in recent weeks been weighed down by investor uncertainty surrounding the outlook for commodities, with fears of an economic slowdown looming.
The materials sector also lost 1.3%.
But bucking the trend, technology stocks added 0.1%, tracking a tech sector rally across the border.
In company news, Canadian Western Bank added 3.0% after brokerage RBC turned bullish on the lender, while Fortuna Silver Miners Inc fell 1.0% as Scotiabank resumed coverage on the miner with a "sector perform" rating.
Meanwhile, United Conservative Party (UCP) leader Danielle Smith won a provincial election in Canada's main oil-producing province of Alberta; Smith is opposed to a Liberal plan to cap oil and gas emissions, arguing it will lead to a production cut.
Across the border, the bipartisan deal to raise the U.S. debt ceiling faces its first test in Congress after some Republican lawmakers said they would oppose the deal, setting up what could be a nail-biting week of voting. (Reporting by Johann M Cherian and Vansh Agarwal in Bengaluru; Editing by Pooja Desai)
