TSX falls most in month as energy stocks slump

Tue Aug 2, 2016 4:45pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index suffered its biggest one-day fall in more than a month on Tuesday, with energy stocks slumping 2.4 percent as fears of an oil supply glut haunted investors.

Oil prices turned lower, dragging U.S. crude CLc1 below $40 a barrel on persistent worries of a glut after peaking above $50 in early June.

"That definitely weighs on sentiment, especially where Canadian investors are concerned," said Elvis Picardo, strategist at Global Securities in Vancouver.

Energy stocks accounts for almost one-fifth of the index's weight.

The most influential drags included major oil and gas producers Suncor Energy Inc (SU.TO: Quote), which fell 3.1 percent to C$34.06, Cenovus Energy (CVE.TO: Quote), which lost 4 percent to C$17.95, and Canadian Natural Resources Ltd (CNQ.TO: Quote), down 1.9 percent at C$38.79.

Pipeline operator Enbridge Inc (ENB.TO: Quote), which a source said had won an auction to invest in one of Europe's largest offshore wind power projects, lost 1.4 percent to C$52.94.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 105.73 points, or 0.73 percent, at 14,477.01.

That was its sharpest fall since June 27.   Continued...

 
A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. Canada's main stock index was little changed on Monday as weakness in financial and energy shares offset gains in the materials sector.   REUTERS/Mark Blinch (CANADA - Tags: BUSINESS) - RTR3VBYO