TSX Plunges as Commodity Stocks Lose Weight; The Canadian Western Bank shines

May 30 (Reuters) – Canada’s main stock index slid on Tuesday, weighed down by losses in commodity-related stocks and concerns over an economic slowdown, while the Canadian Western Bank rose sharply on a brokerage upgrade.

As of 10:15 am ET (14:15 GMT), the Toronto Stock Exchange’s S&P/TSX Composite Index (.GSPTSE) was down 119.96 points, or 0.6%, to 19,847.99.

The energy sector (.SPTTEN) fell 2.0% and was the top detractor from the TSX as it followed the fall in crude oil prices.

“Energy was one of the sectors that did well last year as many people thought prices would shoot up due to events in Russia and Ukraine; and they certainly did so on a temporary basis,” said Allan Small, senior investment adviser at Allan Small Financial Group.

“But that was overkill, and now the notion of a global growth slowdown has taken hold.”

Canadian equities have high exposure to commodities and have been weighed down by investor uncertainty about the outlook for commodities in recent weeks, amid fears of an economic slowdown.

The materials sector (.GSPTMT) also lost 1.3%.

But bucking the trend, technology stocks (.SPTTTK) gained 0.1%, tracking a rally in the tech sector across the border.

Company news : Canadian Western Bank (CWB.TO) rose 3.0% after brokerage firm RBC turned bullish on the lender, while Fortuna Silver Miners Inc (FVI.TO) fell 1.0% as Scotiabank eased coverage of resumed the miner with a “sector performance”. Evaluation.

Meanwhile, United Conservative Party (UCP) leader Danielle Smith won a provincial election in Canada’s main oil-producing province, Alberta; Smith opposes a liberal plan to limit oil and gas emissions, arguing that it would cut production.

Across the border, the bipartisan deal to raise the US debt ceiling is about to face its first test in Congress after some Republican lawmakers said they would reject the deal, sparking a potentially nerve-wracking voting week.

Reporting by Johann M. Cherian and Vansh Agarwal in Bengaluru; Edited by Pooja Desai

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