TSX rises modestly with gold miners; oil weighs

Aug 31 Canada’s main stock index fell on Wednesday as the resource-rich market was hurt by a sharp slide in oil prices that hit its energy companies, while banks and other financial stocks also pulled back.

The S&P/TSX composite index rose 52.47 points to 14,733.44.

In the absence of a fresh catalyst, stock markets, including the TSX, are going to “trend sideways”, said Jay Bala, senior portfolio manager at AIP Asset Management Inc., who favors investment strategies whose returns are not dependent on the direction of the overall market. The raw-materials group has been the worst performer among 10 industries this month, slumping 9.7 percent on a slump in gold.

The energy group, which accounts for one-fifth of the index’s weight, lost 0.2 percent as oil prices fell due to high output from Middle Eastern producers and a stronger USA dollar, in which the commodity is priced.

Shares in First Majestic Silver Corp declined 5.1 percent to C$15 after a hedge fund disclosed a short position in the stock.

Meanwhile, the Canadian dollar was at 76.79 cents U.S., down 0.13 of a cent, as the October crude contract fell 66 cents at US$46.98 per barrel. The financials group slipped 0.3 percent.

Ritchie Bros. Auctioneers Inc RBA.TO soared more than 24 per cent to $46.74. Shares in Agrium climbed more than seven per cent, or $8.56, to $125.09.

Gold fell XAU= to a six-week low after Federal Reserve officials sounded a hawkish note on interest rates, while attention turned to USA payrolls data this week for further clues on the pace of rate hikes.

Gold miners also gained, even as the price of gold fell, after having lost significant ground over the course of August, with Barrick Gold adding 2.5 percent to C$22.84.