TSX declines as energy shares dip with oil price

Tue Apr 21, 2015 4:20pm EDT
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By Solarina Ho

TORONTO (Reuters) - Canada's main stock index declined on Tuesday as shares of energy producers slipped with oil prices as worries about increasing U.S. inventories resurfaced.

The price of oil gave back 2 percent, reflecting weakness after a recent rebound in sentiment.

The benchmark TSX index's energy group retreated 1.5 percent as oil prices fell on a stronger U.S. dollar. Suncor Energy Inc fell 0.9 percent to C$39.92, and Canadian Natural Resources declined 2 percent to C$40.13.

“Given the gains we’ve seen lately, this is a normal trading correction,” said Colin Cieszynski, chief market strategist at CMC Markets.

It does not look like the current oil price recovery has run out of gas, he added.

Brookfield Asset Management, which said on Monday it is raising $1.1 billion through a new equity issue to help fund growth, fell 3.7 percent to C$68.13. The heavily weighted financials group was off 0.4 percent.

The Toronto Stock Exchange's S&P/TSX composite index unofficially closed down 66.16 points, or 0.43 percent, at 15,346.44. Five of the 10 main sectors on the index were in the red.

Teck Resources Ltd was another top mover, after the mining company slashed its dividend and posted a quarterly profit that was below expectations. Shares fell 6.4 percent to C$15.83.   Continued...

A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.  REUTERS/Mark Blinch