TSX closes at five-week low as energy, BlackBerry slump

Mon Mar 9, 2015 4:43pm EDT
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index hit its lowest level in five weeks on Monday, as energy shares fell with weaker Brent oil prices LCOc1 and smartphone maker BlackBerry Ltd (BB.TO: Quote) dropped after a downgrade by Goldman Sachs.

BlackBerry shed 7.4 percent to end at C$12.44, and the energy sector dropped 2.4 percent on continued weakness in crude prices on concerns about oversupply. [O/R]

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE settled down 98.01 points, or 0.66 percent, at 14,854.49, its weakest level since Feb. 2. Six of the 10 main sectors on the index were in the red.

Monday's decline in Canadian stocks followed a selloff on Friday, when a robust U.S. jobs report stoked concerns that the U.S. Federal Reserve might raise interest rates sooner than expected.

"The market is going through a pause. It's likely that oil could go lower one level from here," said Douglas Davis, vice chairman at Davis-Rea.

He added, however, that he was positive on the energy sector over the long term.

Among shares of energy producers, Suncor Energy Inc SU.TO fell 2.6 percent to C$35.95, and Canadian Natural Resources Ltd CNQ.TO dipped 2.2 percent to C$36.66.

Materials stocks, which include the mining sector, fell 1.5 percent.   Continued...

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