TORONTO (Reuters) - Canada’s main stock index closed at its weakest level in more than five weeks on Monday, pressured by global growth concerns, sustained pressure on crude prices, and anticipation of a December rate hike from the Federal Reserve.
The most influential downward force was Brookfield Asset Management Inc BAMa.TO, which declined 5.6 percent to C$43.25 after changing tack in its takeover approach for Australian port and rail company Asciano Ltd AIO.AX.
The energy group retreated 1.2 percent as oversupply weighed on crude oil prices for a fourth straight day, with Suncor Energy Inc SU.TO down 1.3 percent at C$38.97. [O/R]
Canadian Natural Resources Ltd CNQ.TO ended off 2.2 percent at C$32.93 after agreeing to sell most of its royalty assets in a C$1.8 billion ($1.4 billion) deal, joining other oil producers in shedding assets to weather the crude price slump.
The buyer, PrairieSky Royalty Ltd PSK.TO, advanced 0.5 percent to C$26.12.
“It’s going to remain a tough environment for all these guys,” said Bryden Teich, associate portfolio manager at Avenue Investment Management. “I think there is probably more pain to come in Alberta over the coming months.”
Pipeline companies also weighed, with their dividend yields looking less attractive as investors increased their bets on a Fed hike in December after Friday’s solid U.S. jobs report.
Enbridge Inc ENB.TO fell 2.5 percent to C$50.44.
Six of the index’s 10 main groups were in negative territory, including the heavyweight financial sector, telecoms, and consumer names.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended down 70.68 points, or 0.52 percent, at 13,482.62. That was its lowest close since Oct. 2.
“Global growth has been slowing, in particular in China, and that’s going to definitely keep equities in check,” said Youssef Zohny, portfolio manager at StennerZohny Investment Partners.
Declining issues outnumbered advancers by 147 to 88.
Additional reporting by Fergal Smith; Editing by W Simon and Andrew Hay