TSX declines as oil prices hit by Goldman forecast

Mon Jan 12, 2015 4:57pm EST
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By John Tilak

TORONTO (Reuters) - Canada's main stock index dropped on Monday after an oil outlook cut by Goldman Sachs sent the commodity's prices and energy shares sharply lower.

Oil prices, which have been pressured by concerns about excess supply, tumbled more than 5 percent and reached their lowest level since early 2009.

The benchmark TSX neared its weakest level in nearly four weeks, with five of the 10 major sectors on the index trading in the red. Shares in the energy sector are down about 41 percent since last June.

"There's no let-up in the selloff. The selling has been relentless," said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver.

"There is a growing view that perhaps investors are underestimating the impact of the crude oil collapse on the Canadian economy," he added.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE settled 119.91 points lower, falling 0.83 percent, to 14,265.01.

Shares of energy producers gave back 4.6 percent, with Canadian Natural Resources Ltd (CNQ.TO: Quote) shedding 4.1 percent to C$31.81 and Suncor Energy Inc (SU.TO: Quote) losing 3.6 percent to C$34.32.

Financials, the index's most heavily-weighted sector, fell 0.9 percent. Toronto Dominion Bank (TD.TO: Quote) declined 1 percent to C$52.09 and Bank of Montreal (BMO.TO: Quote) was down 1 percent at C$77.52.   Continued...

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