TSX drops on weak oil; golds rebound

Fri Jul 24, 2015 5:03pm EDT
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By Solarina Ho

TORONTO (Reuters) - Canada's main stock index fell on Friday as weak oil prices dragged down shares of energy producers, offsetting a rebound by gold-mining shares.

The benchmark index declined for a sixth straight session and is down about 3 percent so far this year.

Disappointing earnings contributed to Friday's decline, with the only major bright spot being the jump by gold miners after days of steep losses. In the sector, Goldcorp Inc (G.TO: Quote) rallied 4.1 percent to C$17.35 and Barrick Gold Corp (ABX.TO: Quote) added 2.8 percent to C$9.47.

“When a sector is oversold and beaten up as it is right now, long-term investors can see some good entry points,” said Youssef Zohny, portfolio manager at StennerZohny Investment Partners+ of Richardson GMP Ltd, which manages about C$28.3 billion in assets.

“Resource shares look attractively priced and are a buying opportunity if you take the long-term outlook,” he added.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 79.13 points, or 0.55 percent, at 14,186.24. Six of the 10 main sectors on the index were in the red.

Shares of Encana Corp (ECA.TO: Quote), Canada's No. 1 natural gas producer, plunged 8.6 percent to C$10.26 after it reported a bigger-than-expected quarterly loss.

With crude oil prices trading lower, Suncor Energy (SU.TO: Quote) shed 1.7 percent to C$33.08. The overall energy sector, which has fallen more than 25 percent from its highs in April, retreated 2.2 percent.   Continued...

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