TORONTO — Falling metals and materials stocks pulled the Toronto stock market moderately lower Wednesday, while the U.S. central bank announced it was leaving its key interest rate unchanged.
The S&P/TSX composite index fell 76.51 points to 15,543.14, with all major sectors registering declines.
On the corporate front, shares of Home Capital Group Inc. (TSX:HCG) fell nearly 12 per cent or 91 cents to $6.84 after the troubled mortgage lender postponed the release of its financial results until May 11. The company had been scheduled to release the figures Wednesday.
A number of other big companies reported earnings.
The owner of the Toronto Star newspaper and other media operations reported a $24.4 million loss in its most recent quarter as it continued to deal with declining advertising revenue. The loss was an improvement from last year when the comparable losses were more than twice as big. Shares of Torstar (TSX:TS.B) shed more than nine per cent, or 16 cents, to $1.50.
Loblaw (TSX:L), Canada’s biggest grocery and drug store retailer, reported $230 million in net earnings, up from $193 million in the same quarter last year. Its shares were barely changed, down 0.17 per cent or a penny to $76.86.
Trading action was more muted in New York, as the Nasdaq composite index dropped 22.82 points to 6,072.55, a day after it hit a record on gains from technology stocks.
The broader-based S&P 500 shed 3.04 points to 2,388.13, while the Dow Jones industrial average was ahead 8.01 points to 20,957.90.
As expected, the U.S. Federal Reserve announced it was leaving interest rates unchanged this month.
The central bank had modestly raised its benchmark short-term rate in December and March, with most economists expecting it to do so again when it next meets in mid-June.
It signalled that the Fed expects the U.S. economy to be resilient and that more hikes can be justified for this year.
“It’s pretty much of what we had thought was going to happen,” said Colin Cieszynski, chief market analyst at CMC Markets Canada.
“The Fed didn’t really say much and they’re just kind of leaving all their options open. They didn’t make any hints on June or when they may start cutting back their balance sheet.”
In the currency market, the average value for the Canadian dollar was 72.92 cents US, up 0.03 of a cent from Tuesday.
Commodities were mixed with the June crude contract ahead 16 cents at US$47.82 per barrel, while the June natural gas contract gained three cents at US$3.23 per mmBTU.
The June gold contract pulled back $8.50 at US$1,248.50 an ounce and the July copper contract was down nine cents at US$2.54 a pound.
