TSX falls to nearly four-week low as oil, gold slide

Mon May 9, 2016 5:20pm EDT
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index fell to a nearly four-week low on Monday as lower commodity prices weighed on energy and mining stocks, while financials also fell.

The index has fallen 2.9 percent from a recent six-month high of 13,972.62, pressured by a weakening in commodity prices and a wildfire that led to production cuts in Canada's oil sands region.

"That commodity related energy trade that's had a pretty good couple of months there, has faded here in the last couple of weeks," said Paul Hand, managing director at RBC Capital Markets.

The most influential movers on the index on Monday included Barrick Gold Corp (ABX.TO: Quote), which fell 5.5 percent to C$22.52, and Goldcorp Inc (G.TO: Quote), which declined 4.6 percent to C$23.65.

Spot gold XAU= fell 2 percent, while copper CMCU3 hit its lowest in nearly a month as weak trade data from top consumer China highlighted poor demand growth prospects and the U.S. dollar rose. [GOL/][MET/L]

The materials group, which includes precious and base metals miners and fertilizer companies, lost 4.5 percent.

Suncor Energy Inc (SU.TO: Quote), which cut production last week due to the wildfire, fell 1.8 percent to C$33.24.

About half of Canada's daily oil sands crude output, or 1 million barrels per day, has been taken offline, according to a Reuters estimate.   Continued...

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