April 21, 2015 / 3:28 PM / 3 years ago

CANADA STOCKS-TSX slides as resource shares drop, profit-taking hits railways

(Adds updated prices, details and analyst’s comment)

* TSX down 66.32 points, or 0.43 percent, at 15,346.28

* Six of the 10 main index groups fall

* Industrials off 1.2 percent

* Energy issues off 0.9 percent

By Solarina Ho

TORONTO, April 21 (Reuters) - Canada’s main stock index fell on Tuesday as wary investors shied away from energy stocks as oil prices dipped and took profits on Canadian railways after they reported stronger than expected quarterly results.

Shares in the country’s two main railways, Canadian National Railway Co and Canadian Pacific Railway Ltd, rose on Monday ahead of their first-quarter earnings reports. On Tuesday, CN Rail, the most influential mover on the index, declined 3.1 percent to C$80.75, after climbing nearly 3 percent the day before. CP Rail fell 0.8 percent to C$235.32 after its Monday rise.

The market may also have been concerned about the overall rail industry outlook following disappointing results from U.S. railways. The index’s industrials group, home to the railways, retreated 1.2 percent.

Brookfield Asset Management, which said on Monday it is raising $1.1 billion through a new equity issue to help fund growth, fell 3.9 percent to C$67.93. The heavily weighted financials group was off 0.4 percent.

Teck Resources Ltd was another top mover, after the mining company slashed its dividend and posted a quarterly profit that was below expectations. Shares fell 5.5 percent to C$15.99.

The materials sector, home to miners, was down 0.3 percent.

At 10:51 a.m. EDT (1451 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 66.32 points, or 0.43 percent, at 15,346.28. Of the index’s 10 main groups, six were lower.

“This is the sort of market we’re anticipating. A lot of nervous investors out there. We expect to see volatile markets,” said David Cockfield, managing director and portfolio manager at Northland Wealth Management.

Cockfield said investors were jittery about instability overseas and also have lingering concerns about the impact of lower crude prices on the Canadian economy.

“The economic horizon has definitely darkened over the last six to eight months with the oil collapse,” he said. “It’s bound to have some sort of impact when a big chunk of the TSX is under a cloud.”

The index’s energy group retreated 0.9 percent as oil prices slipped on a stronger U.S. dollar. Suncor Energy Inc fell 0.82 percent to C$39.94, and Canadian Natural Resources declined 1.1 percent to C$40.49.

Declining issues outnumbered advancing ones on the TSX by a 1.93-to-1 ratio on the downside.

$1=$1.225 Canadian Reporting by Solarina Ho; Editing by Peter Galloway

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