(Adds quote, details. In U.S. dollars unless noted)
TORONTO, Dec 17 (Reuters) - With the Toronto Stock Exchange closed on Wednesday because of technical problems, shares of some interlisted Canadian companies saw mixed action south of the border.
EnCana Corp ECA.N, Canada’s No. 1 oil and gas producer, dropped 3.03 percent to $46.36 as oil fell $3.54 to settle at $40.06 a barrel, after earlier dipping below $40 for the first time since July 2004.
The Organization of the Petroleum Exporting Countries agreed to cut 2.2 million barrels a day of output starting on Jan. 1, the biggest single reduction on record.
But oil prices dropped as dealers said the OPEC cuts did not go far enough to offset slumping world demand and prop up retreating prices. [ID:nSP305685].
“The Street fully anticipated the OPEC cut so there was no positive surprise and (prices) had already run up in advance of the OPEC cut,” said Lex Kerkovius, senior research analyst at McLean & Partners Wealth Management Ltd. in Calgary, Alberta.
“I think there’s a bigger message there. You need to be more proactive rather than reactive. At this point, the market’s displeasure is that OPEC is strictly reacting to demand but not really getting ahead here.”
Nexen Inc NXY.N fell 3.7 percent to $17.93. It said on Wednesday it would acquire a majority interest in its Long Lake oil sands project, buying up the stake held by joint-venture partner Opti Canada Inc OPC.TO for C$735 million. [ID:nBNG405486]
Barrick Gold Corp (ABX.N) rose 1.7 percent to $35.49 as gold rose to its highest level in two months and the U.S. dollar retreated against major currencies. [ID:nLH366054] Earlier Wednesday, the company lowered its estimates of damage at its North Mara mine in Tanzania after it was attacked by protesters last week. [ID:nLH571419]
Goldcorp (GG.N) fell 3.3 percent to $30.62.
In financials, Manulife Financial (MFC.N) dropped 3.6 percent to $17.00, while Toronto-Dominion Bank (TD.N) fell 3.2 percent to $33.47. Financial issues worldwide were hit by more worries about fallout from the credit crisis as optimism faded over the U.S. Federal Reserve’s rate cut to near zero on Tuesday.
Research In Motion RIMM.O rose 1.83 percent to $40.67.
The Toronto Stock Exchange and the small-cap TSX Venture Exchange both failed to open on Wednesday due to a system fault with data feeds.
Exchange operator TMX Group (X.TO) said it intends to reopen the exchanges on Thursday morning.
Kerkovius called the outage “exceptionally” disappointing.
“I don’t recollect it in the 28 years I’ve been in the business,” he said. “This is not a good thing. You’ve got investors out of touch here in Canada.”
$1=$1.19 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway