CANADA STOCKS-TSX hits 1-month low as NDP victory sends energy stocks tumbling

Wed May 6, 2015 10:59am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(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.   Continued...