TSX struggles for direction as weaker energy offsets gains in financials By Reuters

By Purvi Agarwal

(Reuters) -Canada’s main stock index was little changed on Friday as losses in energy shares were offset by gains in heavyweight financial stocks, while the index was set for a weekly gain after a tech-fuelled rally in the previous session.

At 10:15 a.m. ET (15:15 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 1.92 points, or 0.01%, at 21,320.

U.S. Federal Reserve Governor Christopher Waller said on Thursday U.S. Federal Reserve policymakers should delay interest rate cuts by at least another couple more months.

Energy shares on the TSX were the biggest drag on the index, with a 1.1% decline, tracking a drop in oil prices on receding rate cut bets after the policymaker’s comments. [O/R]

Heavyweight financials rose 0.6%, boosted by a 5.1% gain in investment manager CI Financial, whose fourth-quarter profit beat estimates.

Technology stocks edged 0.1% higher, powered by a 13.6% surge in Docebo after the software company’s fourth-quarter results beat analysts’ estimates.

However, the sector is on track to lag its peers this week, while consumer staples stocks could be the best performer if gains hold.

“It’s a day after we had a huge rally in markets. They have gone up and now they’re just leveling off,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.

Quarterly earnings from banks, including Bank of Montreal, Bank of Nova Scotia and the Royal Bank of Canada will also be on the radar next week, with financials having the heaviest weight on the index.

“People will be looking to see how is the Canadian economy impacting the banks. If the bank results come in good, that means the Canadian economy is doing reasonably well and there’s less pressure on the Bank of Canada to cut rates”, Cieszynski added.

Among other stocks, real estate intelligence service provider Altus Group climbed 8.3% after upbeat quarterly profit.