TSX dragged lower by energy stocks as oil falls

Mon Jul 25, 2016 4:45pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's benchmark stock index lost ground on Monday, weighed by energy stocks that retreated with oil and to a lesser extent by gold miners hurt by lower prices for bullion.

The energy group fell 3.7 percent, as U.S. crude fell to a three-month low below $43 a barrel amid worries about a global supply glut and economic headwind.

The most influential weights on the index included its biggest oil and gas producers, with Canadian Natural Resources Ltd (CNQ.TO: Quote) shedding 4.4 percent to C$39.74 and Suncor Energy Inc (SU.TO: Quote) falling 3.3 percent to C$34.82.

"Until someone or something can make me understand why oil will go back to $60, $70, $80 a barrel I'm staying clear," said Allan Small, a senior investment advisor at HollisWealth.

Major gold miners also moved lower, with Barrick Gold Corp (ABX.TO: Quote) down 3 percent at C$26.21 and Agnico Eagle Mines Ltd (AEM.TO: Quote) off 4.1 percent at C$67.78, as the price of bullion retreated ahead of central bank meetings in the United States and Japan.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.9 percent.

The world's major economies pledged at a G20 meeting this past weekend to use all policy tools available to boost growth.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 102.56 points, or 0.70 percent, at 14,498.10. The index notched its highest close in a year on Friday.   Continued...

 
A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014.   REUTERS/Mark Blinch