Advertisement
Canada markets close in 3 hours 46 minutes

  • S&P/TSX

    21,841.87
    -169.85 (-0.77%)
     

  • S&P 500

    5,051.16
    -19.39 (-0.38%)
     

  • DOW

    38,357.87
    -145.82 (-0.38%)
     

  • CAD/USD

    0.7288
    -0.0032 (-0.44%)
     

  • CRUDE OIL

    82.98
    -0.38 (-0.46%)
     

  • Bitcoin CAD

    88,872.64
    -2,618.31 (-2.86%)
     

  • CMC Crypto 200

    1,397.07
    -27.03 (-1.90%)
     

  • GOLD FUTURES

    2,336.80
    -5.30 (-0.23%)
     

  • RUSSELL 2000

    1,985.38
    -17.27 (-0.86%)
     

  • 10-Yr Bond

    4.6540
    +0.0560 (+1.22%)
     

  • NASDAQ

    15,649.81
    -46.83 (-0.30%)
     

  • VOLATILITY

    16.18
    +0.49 (+3.12%)
     

  • FTSE

    8,040.38
    -4.43 (-0.06%)
     

  • NIKKEI 225

    38,460.08
    +907.92 (+2.42%)
     

  • CAD/EUR

    0.6817
    -0.0019 (-0.28%)
     
MARKETS LIVE BLOG:

STOCKS SHED GAINS, TESLA SURGES DAY AFTER EARNINGS

Tesla shares jump after EV maker vows to speed up launch of more affordable models

TSX knocked down more than 1 percent as energy crumbles

Reuters
A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch

By Alastair Sharp

TORONTO (Reuters) - A capitulation in heavyweight energy stocks pummeled Canada's main stock index on Wednesday, pushing it down 1.1 percent as crude oil prices plumbed new depths after a shock rise in U.S. stockpiles.

The energy group sank 4.3 percent, knocking it to its lowest since August 2004, in line with a similar fall in the commodity after the U.S. inventories numbers reinforced concerns about a global supply glut. [O/R]

"There's quite a bit of panic in the energy sector right now," said Youssef Zohny, portfolio manager at StennerZohny Investment Partners+ of Richardson GMP Ltd.

ADVERTISEMENT

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended down 157.24 points, at 14,036.63. There were three decliners for every advancing stock.

Canadian Natural Resources Ltd (Toronto:CNQ.TO - News), the country's largest independent petroleum producer, lost 5.6 percent to C$28.30 and Suncor Energy Inc (Toronto:SU.TO - News), Canada's largest oil and gas company, fell 3.2 percent to C$35.16.

Ten smaller operators gave up between 7 and 15 percent of their market value.

Zohny said that for investors with a three-to-five-year horizon, some names could be considered buying opportunities at these levels.

"There's quite a bit of bad news priced into the sector and there could still be some short-term pain, but it's definitely starting to look more attractive," he said.

A slip in the influential financials group also contributed to the index's slide, its eighth in 10 sessions.

The financials are being tested by a combination of factors, said Philip Petursson from the portfolio advisory group at Manulife Asset Management, including banks' ties to commodities-related companies and the low interest-rate environment.

The group fell 0.7 percent, with Bank of Nova Scotia (Toronto:BNS.TO - News) down 1.2 percent to C$59.88 and Toronto-Dominion Bank (Toronto:TD.TO - News) giving up 0.7 percent to C$51.93.

Investors will be closely watching bank earnings next week, Richardson GMP's Zohny said, and negative reports could push the index below 14,000.

Gold miners featured heavily among the most influential gainers, propped up by higher prices for the safe-haven precious metal. [GOL/]

Goldcorp Inc (Toronto:G.TO - News) rose 2.9 percent to C$19.85 and Barrick Gold Corp (Toronto:ABX.TO - News) added 3.7 percent to C$10.34.

(Reporting by Alastair Sharp; Editing by Peter Galloway and James Dalgleish)