Toronto Stock Exchange, Canada's main stock market, on Wednesday dipped as investors were trading prudently after the World Bank lowered its projection for this year's global economic growth one day earlier.
After rising for eight consecutive days, the benchmark S&P/TSX Composite Index of the bourse edged down 12.25 points, or 0.08 percent, to 14,892.13 points, with most of its major sectors in the red.
The market sentiment was subdued when the country's biggest bank Royal Bank of Canada (RBC) said Wednesday that Canada's economic growth hinges on external demand. "Our outlook for Canada is predicated on the fact that U.S. economic growth will be broadly based and that slowing global import demand that started in early 2012 will reverse course," said Craig Wright, senior vice- president and chief economist with RBC.
However, the World Bank on Tuesday said the global economic expansion is to be dampened by a series of events such as the Ukraine crisis, the slowing-down growth both in U.S. and China, which was considered by investors as an obstacle for Canada's export recovery.
The most heavily weighed sector Financials lost ground in the midday trading and decreased 0.4 percent as Toronto-Dominion Bank lost 0.64 percent to 54.64 Canadian dollars (about 50.27 U.S. dollars) a share and Manulife Financial Corp. was down 0.67 percent to 20.66 Canadian dollars a share.
The mining sector was also weighed in the midday trading and went down 0.77 percent as well at the closing bell. Most of the basic metals companies were in the negative territory with the copper producer Lundin Mining Corp. falling 1.93 percent to 5.6 Canadian dollars a share.
By contrast, S&P/TSX Global Gold Index moved ahead 1.52 percent, driven up by the rally in bullion price. Barrick Gold Corp. added 0.79 percent to 17.86 Canadian dollars and Detour Gold Corp. even jumped 6.32 percent to 12.44 Canadian dollars.
The telecom sector shed 1.2 percent, leading the losers, with Rogers Communications Inc. plunging 2.3 percent to 43.67 Canadian dollars, and Bell Aliant Inc. going down 2.59 percent to 28.25 Canadian dollars.
On the currency front, the Canadian dollars on Wednesday moved up to 0.9202 U.S. dollar from 0.9171 U.S. dollar Tuesday.