Canadian stock market moves lower as financials, telecom lose ground

Canada's main stock market in Toronto on Tuesday extended losses following a big slump Monday, as the rebound of resources shares failed to offset the losses in the financial and the telecom shares. Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite Index was lower 49.31 points, or 0.34 percent, to 14,376. 24 points, with mixed performances in the eight most weighed sectors.

Resources shares, which dropped sharply Monday, were bouncing up Tuesday, with Energy going higher 0.38 percent and Metals and mining up 0.01 percent on the closing bell. Most of the companies from the oil-patch and the mining industry made upwards correction when oil prices gained some momentum.

However, the index was still hammered down into the red when Financials, the most influential sector which accounts for 35.58- percent weight in TSX, gave back 0.45 percent when shares of giant banks were in the losing streak. Royal Bank of Canada declined 0.7 percent to 76.62 Canadian dollars (about 59.17 U.S. dollars) while Bank of Nova Scotia lost 0.8 percent to 63.21 Canadian dollars a share.

Investors were in expectations about the upcoming interest rate hike by the U.S. Federal Reserve, the U.S. central bank. According to remarks made by Fed Chair Janet Yellen last week, U.S. interest rates will go up later this year if the economy keeps expanding. And St. Louis Fed chief James Bullard also said in an interview Monday there was a higher than 50 percent chance that the central bank will lift rates in September.

And the biggest loser was Telecom, which dropped 1.65 percent, when the leading telecommunication companies were dragged into the negative territory. Telus plunged 1.89 percent to 44.02 Canadian dollars a share while Rogers lowered 1.25 percent to 44.25 Canadian dollars per share.

Industrials lost 1.19 percent when Canada's biggest railway and aircraft maker Bombardier dived 4.79 percent to 1.79 Canadian dollars a share, and Canadian Pacific Railway Ltd. plunged 5.51 percent to 194.97 Canadian dollars after the railway giant said Tuesday it plans to slash 200 to 300 jobs later this year as the freight business shrinks.

On the currency front, the Canadian dollar on Tuesday rebounded slightly to trade at 0.7723 U.S. dollar, when compared with 0.7694 U.S. dollar Monday.