TSX slumps to two-month low, oil slide hits energy stocks

Tue Sep 13, 2016 4:25pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index fell to its lowest close in more than two months on Tuesday as slumping oil prices weighed on energy shares and heavyweight banking and mining stocks also lost ground amid a broad retreat.

The Toronto Stock Exchange's S&P/TSX composite index ended down 248.04 points, or 1.70 percent, at 14,349.10, with eight stocks falling for every one that gained.

"Obviously we're in a risk-off type mentality in the market, all sectors have sold off," said Ben Jang, a portfolio manager at Nicola Wealth Management.

The energy group lost 3.3 percent as oil prices slid on gloomy outlooks for crude consumption, with pipeline company Enbridge Inc falling 3.2 percent to C$56.94 and producer Canadian Natural Resources Ltd off 3.8 percent to C$38.80. [O/R]

The International Energy Agency (IEA) on Tuesday said a sharp slowdown in global oil demand growth, coupled with ballooning inventories and rising supply, means the crude market will be over supplied at least through the first six months of 2017. [IEA/M]

That followed a surprisingly bearish outlook from OPEC on Monday. [OPEC/M]

Industrials fell 1 percent, while the materials group, which includes precious and base metals miners and fertilizer companies, lost 2.9 percent.

Agrium Inc and Potash Corp posted a second straight day of losses after the pair agreed to combine to navigate a severe industry slump by boosting efficiency and cutting costs, with the new company's potential pricing power likely to attract tough regulatory scrutiny.   Continued...

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