TORONTO – The Toronto Stock Exchange recorded a third weekly decline in as many weeks, returning some of its recent gains amid concerns over the Chinese real estate market and the country’s ban on cryptocurrencies.
Markets were hit early Friday by China’s decision to declare digital currencies like Bitcoin illegal. This particularly affected the technology sector.
Shares of Canadian digital asset miner Hut 8 Mining fell 5.3%, pushing Toronto’s information technology sector down 1.2%.
It has also been suggested that Chinese real estate giant Evergrande may have missed a debt payment, renewing questions about its creditworthiness and its potential domino effect on the global economy.
Evergrande has forced the market this week to focus on real estate and real estate financing in China, and assess whether the main driver of the country’s economy could be weaker for a significantly long period, observed Geoff Castle, manager. portfolio for PenderFund.
“I think the headlines surrounding Evergrande are a bit of a late reflection of something that has been brewing for a decade or so, which is a bit of a potentially unsustainable situation in the Chinese real estate market,” he argued. during an interview.
Investors are also considering the ripple effects of Evergrande on commodities, interest rates and credit availability across Asia.
Toronto’s S & P / TSX Composite Index lost 59.27 points on Friday to end the day with 20,402.66 points. Over the week as a whole, he returned 87.7 points.
In New York, the Dow Jones Industrials Average gained 33.18 points to 34,798.00 points, while the broader S&P 500 Index advanced 6.50 points to 4,455.48 points. The Nasdaq composite index for its part fell 4.54 points to 15,047.70 points.
Nine of the TSX’s eleven sectors retreated, led by Health Care and Information Technology with respective declines of 2.8% and 1.2%.
The health group notably includes the titles of major cannabis producers. Among these, the stock of Cronos Group lost 5.1% and that of Canopy Growth, 4.5%.
The biggest gain was in the energy sector, which advanced 1.3%, supported by rising energy prices. The materials sector for its part retreated by 0.2% despite rising gold and copper prices.
On the New York Commodities Exchange, the price of crude oil rose 68 cents US to US $ 73.98 per barrel, while natural gas rose 15.7 cents US to US $ 5.20 the million BTUs.
The price of gold rose US $ 1.90 to US $ 1,751.70 an ounce, while that of copper climbed 5.45 US cents to US $ 4.29 per pound.
In the currency market, the Canadian dollar traded at an average rate of 78.86 cents US, down from 79.03 cents US the previous day.
The Canadian Press