3 Min Read
(Adds election details, market reaction, analysts comments)
* TSX down 225.81 points, or 1.49 percent, at 14,948.13.
* Nine of the TSX's 10 main groups decline
By Solarina Ho
TORONTO, May 6 (Reuters) - Canada's main stock index fell on Wednesday for the second straight session as hefty losses among energy companies following an unprecedented election outcome in Alberta province pushed the market to its lowest level in more than a month.
The left-wing New Democratic Party (NDP) beat the Progressive Conservatives in a crushing victory that ended the center-right party's 44-year hold on power in the Western Canadian, oil-producing province.
"Putting aside ideology issues, the most significant issue facing the NDP looks to be a lack of governing experience," Credit Suisse analyst Andrew Kuske said in a client note.
Analysts have said the win could hurt energy stocks, at least temporarily, citing potential issues including policy changes that could hurt production levels.
"Policies that crimp growth in oil and gas production would likely impact demand for new infrastructure, and hence, future growth for the stocks with operations in the province," Robert Kwan, an analyst with RBC Dominion Securities wrote in a note.
"Despite unknowns as to how this will play out, we suspect that most stocks with material Alberta operations would initially underperform," he wrote, saying that power producers and pipeline companies would be among those coming under the most pressure.
Energy stocks, which make up some 22 percent of the TSX's weight, plunged 3.2 percent on a day which saw crude prices surge to 2015 highs, typically a positive driver for the sector.
The top three most influential decliners on the index were Enbridge Inc, which fell 3.03 percent to C$60.84; Suncor Energy Inc, which tumbled 3.7 percent to C$36.92; and Canadian Natural Resources, which sank 4.14 percent to C$37.99.
At 10:26 a.m. EDT (1426 GMT), the Toronto Stock Exchange's S&P/TSX composite index fell 225.81 points, or 1.49 percent, to 14,948.13.
Nine of the index's 10 main groups were in the red, with declining issues outnumbering advancing ones by 220 to 24, for a 9.17-to-1 ratio on the downside.
Other heavy losers included the materials group, which fell 1.8 percent, hurt in part by lower metal prices.
Financial shares, another big index mover, were down 1 percent, with Royal Bank of Canada falling 0.7 percent to C$79.95.
Telecoms were the lone gainers, rising 0.9 percent. Rogers Communications Inc led with a 3.6 percent jump to C$43.67, followed by Telus Corp, which was up 1.7 percent, at C$41.54. (Reporting by Solarina Ho; Editing by Jonathan Oatis)