Financials weigh as TSX posts August decline

The facade of the original Toronto Stock Exchange building is seen in Toronto

By Fergal Smith

(Reuters) -Canada's main stock index edged lower on Thursday to extend its monthly decline, as losses for financial and gold mining stocks offset a jump in the shares of e-commerce company Shopify and investors weighed an uncertain economic outlook.

The Toronto Stock Exchange's S&P/TSX composite index ended down 37.7 points, or 0.2%, at 20,292.62. For the month, it was down 1.6%.

"We have seen a lot of volatility over the month," said Michael Sprung, president at Sprung Investment Management. "What that reflects is the uncertainty in the market. We're still fighting the potential idea of a recession."

The heavily-weighted financials sector fell 0.7%, with shares of Canadian Imperial Bank of Commerce ending 3.2% lower after the bank missed estimates for quarterly profit.

"Even though quality stocks (such as dividend-paying financials and utilities) have not entirely participated with the market as interest rates have gone up ... I think it's a relatively more secure and stable place to be," Sprung said.

Industrials lost 0.8% and the materials group, which includes precious and base metals miners and fertilizer companies, was down 0.6%.

In contrast, technology climbed 2.8%, led by a gain of 10.7% for Shopify after the company said Inc would release an app in Shopify's app ecosystem that would give U.S.-based merchants access to Amazon's "Buy with Prime" option.

Healthcare also outperformed, rising 2.3%, as the United States' move to ease curbs on marijuana boosted pot producers.

(Reporting by Fergal Smith in Toronto and Siddarth S in Bengaluru; Editing by Marguerita Choy and Shilpi Majumdar)