TSX falls as energy, mining stocks weigh
By Alastair Sharp
TORONTO (Reuters) - Canada's main stock index fell 1 percent on Monday, its ninth straight decline, as energy stocks slumped on the back of another plunge for crude oil, pushing the index deeper into bear market territory.
Oil prices CLc1 LCOc1 fell 6 percent to new 12-year lows after a further decline in China's blue chip stocks and a surge in overnight interest rates for the yuan heightened fears about the outlook for demand in the world's second-largest economy. [O/R]
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 126.20 points, or 1.01 percent, at 12,319.25. It has lost more than 20 percent, the definition of a bear market, since an all-time high in September 2014.
Allan Small, a senior investment advisor at HollisWealth, said investors were spooked by the combination of China's troubles, tensions between Iran and Saudi Arabia, and a recent North Korean nuclear test.
"This fear factor that's taking over the world really, from Asia to Europe to Canada and the United States, that's the problem," he said.
Major oil and gas producers were among the most influential movers. Canadian Natural Resources (CNQ.TO: Quote) fell 5.5 percent to C$25.81 and Suncor Energy Inc (SU.TO: Quote) lost 4 percent to C$31.92.
Suncor said on Friday it had extended its hostile bid for Canadian Oil Sands Ltd COS.TO until Jan. 27.
The energy group retreated 4 percent and is at its weakest since 2003 as a brutal new-year selloff in oil markets quickened. Continued...