CANADA STOCKS-TSX falls to a more than two-year low on weak resource stocks

Mon Dec 14, 2015 5:23pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* TSX down 94.46 points, or 0.74 percent, at 12,695.49

* Materials sector loses nearly 5 percent

By Fergal Smith

TORONTO, Dec 14 (Reuters) - Canada's main stock index fell to its lowest in more than two years on Monday, notching deep losses for mining stocks while energy shares weakened despite crude oil prices rebounding from near-11-year lows.

The materials group tumbled just less than 5 percent, while energy stocks retreated 1.7 percent.

The two resource-related groups, which together account for more than a quarter of the index's weight, have been its worst performers this year as oil and other commodity prices slumped.

The big picture for the market is that the commodities cycle peaked about four years ago and is "now heading toward the trough area," according to Keith G. Richards, portfolio manager and technical analyst at ValueTrend Wealth Management.

Goldcorp Inc fell 7.7 percent to C$15.24, while Barrick Gold Corp was down 8.9 percent at C$9.69 and fertilizer producer Potash Corp lost 3.4 percent to C$23.02.

Encana Corp fell 8.2 percent to C$7.63 after the oil and natural gas producer slashed its dividend and cut its 2016 capital budget. Suncor Energy Inc declined 1.9 percent to C$34.55.   Continued...