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CANADA STOCKS-TSX slides on N. Korea, gold miners shine on flight to safety
August 29, 2017 / 3:15 PM / 4 months ago

CANADA STOCKS-TSX slides on N. Korea, gold miners shine on flight to safety

* TSX down 62.34 points, or 0.41 percent, to 14,989.69

* Eight of the TSX’s 10 main groups were down

TORONTO, Aug 29 (Reuters) - Canada’s main stock index fell on Tuesday in tandem with global markets rattled by fresh tensions over North Korea after the reclusive state fired a ballistic missile over northern Japan into the sea.

The test is one of the most provocative ever from North Korea and came as U.S. and South Korean forces conduct annual military drills in the region. U.S. President Donald Trump warned that “all options are on the table” after the missile test.

Canada’s top banks had the biggest impact on the index’s declines, with Bank of Montreal sliding 2.0 percent to C$90.56, and Bank of Nova Scotia declining 0.6 percent to C$76.73. The retreat came even as both banks reported third- quarter profit that beat forecasts.

The overall financial services sector gave up 0.7 percent.

Energy stocks were also a big drag on the index, falling 0.8 percent, hurt by lower oil prices which extended Monday’s declines on concerns over rising crude inventories due to the fallout from Harvey, a hurricane downgraded to a tropical storm.

Enbridge Inc was down 1.1 percent to C$49.33, while Encana Corp was down 1.3 percent to C$11.12.

Thirteen percent of U.S. refining capacity was shut down after Harvey tore through the heart of the country’s petroleum industry.

U.S. crude prices fell 1.0 percent to $46.12 a barrel.

At 10:29 a.m. ET (1429 GMT), the Toronto Stock Exchange’s S&P/TSX composite index fell 62.34 points, or 0.41 percent, to 14,989.69.

Of the index’s 10 main groups, materials and healthcare were the only sectors that made gains.

The materials sector rose 0.7 percent, helped by gold mining stocks that benefited from investors fleeing riskier assets toward safe-haven bullion, which jumped to its highest level since November.

Gold futures rose 1.1 percent to $1,323.8 an ounce.

Agnico Eagle Mines increased 2.5 percent to C$63.56, and Barrick Gold Corp was up 1.0 percent to C$22.26.

Prometic Life Sciences was another bright spot, soaring 23.3 percent to C$1.48 after it said the U.S. Food and Drug Administration granted the company a rare pediatric disease designation for its plasminogen replacement therapy.

Overall, declining issues outnumbered advancing ones on the TSX by 152 to 88, for a 1.73-to-1 ratio on the downside. (Reporting by Solarina Ho; Editing by W Simon)

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