CANADA STOCKS-NDP's Alberta win drags TSX to one-month low

Wed May 6, 2015 4:59pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Adds fund manager comments, updates shares)

* TSX down 150.05 points, or 0.99 percent, at 15,023.89

* Seven of the TSX's 10 main groups decline

By John Tilak and Solarina Ho

TORONTO, May 6 (Reuters) - Canada's main stock index dropped about 1 percent on Wednesday, hitting a one-month low, as the victory of the New Democratic Party in oil-rich Alberta's provincial election hit energy shares.

The left-wing NDP beat the Progressive Conservatives in a crushing win that ended the center-right party's 44-year hold on power in the western Canadian province.

Strategists and fund managers said the win could hurt energy companies, at least temporarily, citing potential policy changes that could weigh on production levels. One fear is that the new government could possibly increase royalty rates.

"The implications of a rise in royalty rates would be quite negative for the Canadian energy sector, coming as it would at a time of unprecedented turmoil caused by the plunge in crude oil prices," said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver.

"The incipient recovery we have been seeing lately in the energy sector could well be quashed," he added.   Continued...