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TSX extends losing streak as Ukraine uncertainty weighs

Published 02/23/2022, 07:10 AM
Updated 02/23/2022, 04:42 PM
© Reuters. FILE PHOTO: sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.  REUTERS/Mark Blinch/File Photo
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index fell on Wednesday to its lowest level in nearly four weeks as investors balked at buying stocks due to escalating uncertainty in Ukraine.

The Toronto Stock Exchange's S&P/TSX composite index ended down 163.65 points, or 0.8%, at 20,744.17, its fifth straight decline and lowest closing level since Jan. 28.

Wall Street indexes also ended lower as Ukraine declared a state of emergency and the U.S. State Department said a Russian invasion of Ukraine remains potentially imminent.

"Investors remain apprehensive to buy stocks given the uncertainty," said Brandon Michael, senior investment analyst at ABC Funds. "There is a near maximum level of negativity baked into equities."

The technology sector fell 2.1%, while industrials lost 2% and heavily weighted financials ended 1.3% lower.

Royal Bank of Canada is due to kick off Canadian bank earnings on Thursday.

"Although this quarterly earnings report (season) likely won't be spectacular, interest rates should start rising in due course, which will expand net interest margins," Michael said.

The Bank of Canada is expected to hike next Wednesday for the first time since October 2018.

© Reuters. FILE PHOTO: sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.  REUTERS/Mark Blinch/File Photo

Resource shares were a bright spot, with energy gaining 0.3% and the materials group, which includes precious and base metals miners and fertilizer companies, adding 0.4%.

Gold advanced 0.5% to $1,908.26 per ounce, benefiting from safe-haven demand.

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