By Fergal Smith
(Reuters) – Canada’s main stock index fell on Thursday to its lowest closing level in nearly a week as the energy and financial sectors lost ground, while shares of Bombardier Inc rallied after the company’s targets for 2025 impressed investors.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 72.86 points, or 0.4%, at 19,459.92, its lowest closing level since last Friday.
Wall Street seesawed to a higher close as U.S. Treasury Secretary Janet Yellen provided reassurances that measures will be taken to keep Americans’ deposits safe, but jitters among regional banks persisted.
“We’re getting thrown in with the U.S. banks even though our banks really don’t have anything to do with these regional banks down in the U.S.,” said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth. “When the banking sector as a whole gets sold off, so do our banks.”
The Toronto market’s heavily weighted financials sector was down 0.7%, while energy fell 1.8% as the price of oil settled 1.3% lower at $69.96 a barrel.
Oil fell after U.S. Energy Secretary Jennifer Granholm told lawmakers that refilling the country’s Strategic Petroleum Reserve (SPR) may take several years.
Bombardier shares ended up 2.8% after the company raised its 2025 revenue and free cash flow targets at its investor day, banking on strong demand for private flights.
“Bombardier as a large conglomerate has done a relatively good job of shedding its non-core assets and realigning itself as a business jet provider,” said David Pepall, portfolio manager at Aventine Investment Counsel.
Technology was another bright spot, rising 1.4%.
(Reporting by Fergal Smith; Additional reporting by Johann M Cherian in Bengaluru; Editing by Vinay Dwivedi and Will Dunham)
