TSX dips but still posts biggest weekly gain since November

TSX ends down 0.4% at 24,968.49

For the week, the index adds 1.7%

Materials group falls 1% as gold retreats

Canada cancels capital gains tax hike

March 21 – Canada’s main stock index gave back some of its weekly gains on Friday, including declines for mining and industrial shares, as the focus returned to U.S. tariff uncertainty after some recent policy decisions from a number of major central banks.

Toronto Stock Exchange’s S&P/TSX composite index ended down 91.75 points, or 0.4%, at 24,968.49. For the week, the index was up 1.7%, its biggest weekly gain since November.

U.S. stocks clawed back losses to end slightly higher after comments from U.S. President Donald Trump provided hope that previously announced tariffs expected to begin in early April may not be as onerous as feared.

U.S. tariffs on steel and aluminum have already been raised. Canada is a major producer of both.

“We are selectively adding to risk assets,” said Joseph Abramson, co-chief investment officer at Northland Wealth Management, adding that the firm particularly likes U.S. banks, which could benefit from a domestic focus and U.S. financial deregulation, but is more hesitant about jumping into Canadian stocks.

“We are still very much in a policy-driven market and that is particularly true for Canada because battling a trade war with somebody much bigger than you is difficult when you’re in a weak bargaining position,” Abramson said.

The Federal Reserve left interest rates on hold on Wednesday but policymakers indicated they still anticipate reducing borrowing costs this year.

The materials group, which includes metal mining shares, fell 1% as the price of gold pulled back from a record high. Consumer discretionary lost 0.8% as data showed Canadian retail sales falling 0.6% in January and likely declining a further 0.4% in February. Industrials ended 1% lower.

Technology helped limit the TSX’s decline, adding 0.7%.

Canada will cancel a proposed hike in the capital gains inclusion rate, ending an increase in the tax on investment profits that had been widely criticized by industry.

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