June 19, 2008 / 5:18 PM / 9 years ago

UPDATE 2-Toronto stocks shed 200 pts, led by energy shares

(Updates to afternoon)

* TSX falls more than 1 percent

* Energy shares tumble along with oil prices

* Jump in May CPI adds to worries about inflation

TORONTO, June 19 (Reuters) - The Toronto Stock Exchange’s main index sagged more than 1 percent on Thursday, as it was yanked down by weak oil and gas shares, and worries about rising inflation.

Sliding oil prices knocked the heavyweight energy sector down 3.3 percent in the wake of news China will raise fuel prices.

Suncor Energy (SU.TO) gave up C$3.06, or 4.6 percent, at C$63.79, and Canadian Natural Resources (CNQ.TO) was down C$4.05, or 3.7 percent, at C$105.65.

The S&P/TSX composite index .GSPTSE was down 198.54 points, or 1.32 percent, at 14,874.59 by early afternoon, with all but two of its 10 sectors lower.

Data showing inflation rose last month because of higher energy prices set the negative tone early as it exacerbated concerns over the threat to the economy.

Consumer prices rose an annualized 2.2 percent in May due to a sharp increase in gasoline prices. The increase of 1 percent from April to May was the single largest monthly rise since January 1991.

The financial and consumer discretionary sectors both weighed on the index amid concerns the inflation numbers could spell an end to interest rate cuts and worries about the the impact higher prices on consumer spending.

Canadian Imperial Bank of Commerce (CM.TO) was down 55 Canadian cents, or 0.9 percent, at C$63.96, while among retailers, Gildan Activewear (GIL.TO) lost 81 Canadian cents, or 2.9 percent, to C$27.32.

Soft drink maker Cott Corp (BCB.TO) was able to buck the trend, gaining 27 Canadian cents, or 10.7 percent, to C$2.80 after it said it will focus on its private-label soft drinks, while it aims to improve profits by cutting jobs and boosting efficiency.

Shares of CHC Helicopter FLYa.TO eased 26 Canadian cents, or 0.8 percent, to C$31.94 after it said it does not expect its takeover by U.S. private equity firm First Reserve Corp to be completed by the June 30 target date.

The subindex of gold producers rose 0.9 percent as it was lifted by firm bullion prices, but the larger materials sector was held lower, edging down 0.3 percent. ($1=$1.01 Canadian) (Reporting by Leah Schnurr; editing by Rob Wilson)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below