TORONTO (Reuters) - Canada’s benchmark stock index finished lower on Monday as energy stocks fell with tumbling oil prices, and financial, telecom and industrial stocks also weighed on the market.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended down 107.10 points, or 0.69 percent, at 15,388.95. Two stocks declined for every gainer.
The most influential movers on the index included some of its biggest oil and gas producers, with the energy group down 2.5 percent overall as oil prices fell on fears that record Iraqi crude exports and growing U.S. output could undermine OPEC’s efforts to reduce supply. [O/R]
Seven Generations Energy (VII.TO) slumped 9.1 percent to C$27.06 after reporting lower-than-expected production in the fourth quarter.
“A lot of momentum was in that name. ... It was really being pushed in the broker channels. It probably ran a little bit ahead of itself,” said Bryden Teich, a portfolio manager at Avenue Investment Management.
The financials group, which accounts for 35 percent of the index weight, lost 0.5 percent, with Brookfield Asset Management Inc (BAMa.TO) off 1.3 percent at C$43.56 and insurer Sun Life Financial Inc (SLF.TO) down 1.5 percent at C$51.46.
Industrials and telecoms both lost 0.8 percent.
On the positive side, Quebecor Inc (QBRb.TO) rose 2 percent to C$38.12 and Shaw Communications Inc (SJRb.TO) added 1.9 percent to C$22.77 after RBC upgraded its view of the two cable companies’ stock.
RBC also raised its view on exchange operator TMX Group Ltd (X.TO), while downgrading telecom companies Rogers Communications Inc (RCIb.TO) and BCE Inc (BCE.TO) as well as mortgage lender Home Capital Group Inc (HCG.TO).
TMX advanced 3.5 percent to C$75.60, Rogers declined 1.5 percent to C$51.40, BCE lost 1.1 percent to C$57.94, and Home Capital shed 2.4 percent to C$30.54.
Canadian companies are more optimistic about sales as demand picks up and they plan to boost investment and hiring, but businesses are uncertain about U.S. protectionism, and the labor market shows signs of substantial slack, the Bank of Canada said on Monday.
Reporting by Alastair Sharp; Editing by Richard Chang