Led by heavy declines in banks, airlines and energy stocks on Tuesday, Canada’s stock index fell, dropping 129.19 points to 15,313.13, weighed down by losses across most sectors with the exception of gold in the Toronto Stock Exchange’s S&P/TSX composite index.
The five major banks in Canada took a big hit all finished red including shares of Manulife Financial falling 4%.
Markets analyst Sadiq Adatia says investors are taking profits from bank stocks after a record-setting run on both sides of the border following U.S. President Donald Trump’s election win in early November.
“You’ll see a bit more of that throughout the year where markets are moving up on some sentiment potentially. But when nothing actually goes on, you might see a bit of a pullback again,” said Adatia, chief investment officer at Sun Life Global Investments.
Shares in airlines also dropped, with Air Canada stock declining 3.34%, or 45 cents to end at $13.3. WestJet Airlines fell 0.8% or 18 cents to end at $22.44
With its biggest one-day loss since mid-October, the Dow Jones industrial average lost 237.85 points to 20,668.01, the S&P 500 index also lost 29.45 points at 2,344.02 and the Nasdaq composite index fell 107.70 points to 5,793.83.
The jitters sent investors to buy bullion, which is considered a safe haven during volatile times. The April gold contract increased $12.50 at $1,246.50 US an ounce.
The Canadian dollar curved in 0.02 of a U.S. cent at 74.86 cents US, as oil prices witnessed loses two days in a row. The May crude contract went down 67 cents at $48.24 US per barrel, in currencies.
In other commodities, April natural gas contracts gained five cents at $3.09 US per mmBTU and May copper contracts fell five cents to $2.62 US a pound.