CANADA STOCKS-TSX falls as energy shares slide with oil price

Wed Sep 10, 2014 11:10am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX down 51.26 points, or 0.33 percent, at 15,485.55
    * Six of the 10 main index sectors decline
    * Suncor, Canadian Natural follow oil price lower

    By John Tilak
    TORONTO, Sept 10 (Reuters) - Canada's main stock index
dropped on Wednesday as worries that U.S. interest rates might
rise weighed on sentiment and lower oil prices dragged down
shares of energy companies.
    Concerns about the Scottish referendum on independence,
which is set for next week, further dampened the mood.
    Investor speculation about when the U.S. Federal Reserve
will raise interest rates heightened ahead of a Fed meeting next
week after which the U.S. central bank is expected to shed more
light on its policy outlook.
    Oil prices, which have been slipping for the past three
months, were hit again by worries over increasing supply and
sluggish demand. 
    "The market is in profit-taking mode. Maybe it is a little
nervous about the uncertainty in Europe," said Matt Skipp,
president of SW8 Asset Management.
    "Canada, with its extreme commodity sensitivity, is
vulnerable in the short term because energy prices are selling
off hard," he said, adding that Canadian equities are likely to
react negatively to any threat of higher U.S. rates.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 51.26 points, or 0.33 percent, at 15,485.55.
Six of the 10 main sectors on the index were in the red.
    Shares of energy producers dropped 1 percent, with Suncor
Energy Inc losing 1.2 percent to C$43.14, and Canadian
Natural Resources Ltd shedding 1.2 percent to C$44.13.
    The industrial sector declined 0.5 percent. Canadian Pacific
Railway Ltd fell 0.7 percent to C$224.70, and Canadian
National Railway Co slipped 0.6 percent to C$80.26.
    ($1=$1.10 Canadian)

 (Editing by Peter Galloway)