TORONTO (Reuters) - Canada’s main stock index fell on Wednesday, hurt by broad weakness among miners and energy companies that overshadowed a surge in shares of train and plane maker Bombardier (BBDb.TO).
The index’s heavyweight energy group lost 2.1 percent, as oil prices CLc1 LCOc1 fell nearly 4 percent, pressured by ample supply and concerns that slowing economic growth is curbing demand.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended down 98.82 points, or 0.72 percent, at 13,531.85. Eight of its 10 main groups slipped. The materials group, which includes miners, lost 1.6 percent.
“What interests me in Canada right now is some of these sectors outside of resources, the more traditional industrials and merchandising and consumers and things like that, because we are starting to see the lower loonie have a positive impact on other parts of the Canadian economy,” said Colin Cieszynski, a senior market analyst at CMC Markets Canada.
He said oil price volatility will likely continue for several more weeks.
“We’re a little bit early for bargain hunting,” he said.
Bombardier jumped 22.7 percent to C$1.46 after Reuters reported that the company had turned down a Chinese bid for control of its rail unit.
The offer for the unit well exceeded the company’s current overall market valuation, helping buoy a stock badly battered in the last year due to the company’s huge debt load and delays and cost overruns on its C Series line of commercial jets.
On the downside, gold miners were also among the heaviest weights, with Goldcorp (G.TO) off 4.1 percent to C$16.82, and Barrick Gold Corp (ABX.TO) declining 3.6 percent to C$8.29. Gold futures GCc1 fell 1.6 percent to $1,106.6 an ounce.
Declining issues outnumbered advancing ones on the TSX by 180 to 62, for a 2.90-to-1 ratio on the downside.
Editing by James Dalgleish