TSX falls as energy stocks and earnings disappointments weigh
By Alastair Sharp
TORONTO (Reuters) - Canada's main stock index fell on Wednesday as energy shares followed oil prices lower, a small financial technology company plunged after missing earnings expectations, and Canadian National Railway Co (CNR.TO: Quote) weighed after its revenue dipped.
The country's largest railway shed 3.8 percent to C$84.30 after its quarterly revenue fell as it moved lower volumes of crude oil, coal and fracking sand.
The industrials group lost 1.4 percent overall, while the technology group shed 2.9 percent, with financial technology company DH Corp DH.TO slumping 43.4 percent to C$16.25 after its earnings missed expectations and several banks slashed their views on the company.
The heavyweight energy group lost 0.8 percent, with oil CLc1 LCOc1 back below $50 a barrel as more doubts emerged about OPEC's ability to strike an effective deal to cut production next month. [O/R]
"The stocks have had a hefty run, so it's not surprising when you see some concerns around OPEC coming together and then the National Energy Board making some comment, both of those put a negative view on the outlook, at least in the near term," said Brian Pow, equity analyst at Acumen Capital Partners in Calgary.
Canada's National Energy Board downgraded its long-term crude oil supply forecast on Wednesday, saying the country would produce around 400,000 barrels per day less oil in 2040 than previously estimated. [L1N1CW1Z5]
Pow said news that aboriginal and environmental groups plan to file lawsuits to overturn the government permit for a controversial $27 billion liquefied natural gas project in British Columbia also weighed on sentiment.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 63.07 points, or 0.42 percent, at 14,807.56. It has lost more than 150 points since hitting a near 16-month high on Monday. Continued...