* TSX ends down 0.8% at 32,840.60
* Posts lowest closing level since February 12
* Financials fall 1.4%; industrials end 2.1% lower
* Energy adds 2.1% as oil settles 9.7% higher (Updates at market close)
March 12 (Reuters) – Canada’s main stock index fell to a one-month low on Thursday as the Middle East conflict weighed on investor sentiment, with declines for financial and industrial shares offsetting gains for energy after oil prices jumped.
The S&P/TSX composite index ended down 279.23 points, or 0.8%, at 32,840.60, marking its lowest closing level since February 12.
US stocks posted steeper declines as Iranian strikes on two oil tankers sent crude prices surging toward $100 per barrel, exacerbating already heightened inflation fears.
“Sentiment is so weak right now,” said Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James.
“The majority of focus is on the Middle East conflict. You are seeing oil prices catching a bid and everything else is selling off.”
Heavily weighted financials dropped 1.4%, including declines for major banks and for non-prime consumer lender goeasy Ltd.
Its shares tumbled 13.9%, adding to sharp declines over the previous two sessions after the company flagged a charge-off of about C$178 million ($130.82 million) and write-downs tied to its LendCare unit.
“That loan market … it’s causing some concerns, especially in Canada where you do have a fragile economy – higher job losses and unemployment starting to go up,” Dehal said.
Canada’s employment report for February, due on Friday, is expected to show the unemployment rate increasing to 6.6% from 6.5% in January.
Industrials lost 2.1%, technology was down 1.5% and the materials group, which includes metal-mining shares, ended 1.1% lower.
The price of gold was down 1.7%, pressured by a stronger US dollar and diminishing hopes for a reduction in borrowing costs as the war stoked inflation concerns. Still, the TSX has advanced 3.6% since the beginning of the year after adding 28.25% in 2025. Investors have turned to the resource-rich market for shelter from the turmoil around artificial intelligence — and on hopes the new technology will ultimately boost productivity for some of its biggest names.
US crude oil futures settled 9.7% higher at $95.73 a barrel on Thursday, while energy added 2.1%. (Reporting by Fergal Smith in Toronto and Rashika Singh in Bengaluru; Editing by Diti Pujara and Alistair Bell)
