The Financial Express

TSX edges lower

| Updated: October 20, 2017 17:35:48

TSX edges lower

Canada's main stock index inched lower on Friday, caught between a plunge in Tahoe Resources Inc and jumps in shares of retailer Hudson Bay Co and construction company Aecon Group, report agencies.

Tahoe ended down 18.7 per cent at C$5.58 after hitting an all-time low, as a Guatemalan court upheld the suspension of the license for its Escobal project, one of the world's largest silver mines. The stock had sunk from around C$11 a share to around C$7 in early July, when the mine was first closed.

Hudson's Bay Co spiked 14.2 per cent higher to C$11.45 after sources told Reuters that the department store operator is seeking to carry out a review of its strategic options amid pressure from an activist investor.

Construction company Aecon Group Inc jumped 20.2 per cent to C$17.24 after it said it had engaged two financial advisers to explore a potential sale.

"If the market doesn't recognize value, you may get activist shareholders who will," said Irwin Michael, portfolio manager at ABC Funds.

"I'm not surprised on Aecon, they're minus a permanent CEO, and in the case of the Hudson's Bay Company, I think there's a lot of confusion out there about what the company really is, whether it's a real estate company or a retailer."

The Toronto Stock Exchange's S&P/TSX composite index ended down 20.17 points, or 0.13 per cent, at 15,055.99. Six of its 10 main groups fell. The index gained 0.7 per cent gain on the week.

Pipeline companies weighed on the energy group, with Enbridge Inc down 1.5 per cent at C$50.40 and TransCanada Corp off 0.8 per cent at C$62.89. As dividend-payers, pipeline firms are sensitive to changes in interest rate expectations.

Investors are focused this week on the annual central banker symposium in Jackson Hole, Wyoming, for clues on the direction of European Central Bank and U.S. Federal Reserve policy. Fed Chair Janet Yellen did not mention monetary policy in prepared marks for a speech at the conference on Friday.

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