TSX falls as lower oil weighs on energy; telecoms rally

Mon May 2, 2016 5:20pm EDT
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index fell on Monday as lower oil prices weighed on energy stocks, offsetting a jump in the shares of Manitoba Telecom Services Inc MBT.TO on news of the company's acquisition by BCE Inc (BCE.TO: Quote).

Oil prices fell as production from the Organization of the Petroleum Exporting Countries neared all-time peaks and record speculative buying in global benchmark Brent sparked profit-taking on last month's outsized rally.

U.S. crude CLc1 prices settled at $44.78 a barrel, down 2.48 percent. [O/R]

"Oil has been under a little bit of pressure today ... I think you are seeing that in some of the oil stocks," said Bryden Teich, associate portfolio manager at Avenue Investment.

The most influential movers on the index included Suncor Energy Inc, which fell 3.4 percent to C$35.58, and Canadian Natural Resources Ltd, which declined 2.7 percent to C$36.66.

The overall energy group dropped nearly 3 percent.

Gold stocks retreated as gold eased back below $1,300 an ounce after having made a fresh 15-month peak. [GOL/]

Goldcorp Inc (G.TO: Quote) fell 3.2 percent to C$24.47, while Barrick Gold Corp (ABX.TO: Quote) was down 1.4 percent at C$23.96.   Continued...

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