January 6, 2015 / 3:58 PM / in 3 years

CANADA STOCKS-TSX hits 2-1/2-week low on oil price slowdown

* TSX down 76.37 points, or 0.53 percent, at 14,316.33

* Eight of 10 main index sectors decline

* Gold-mining shares surge 4 percent

By John Tilak

TORONTO, Jan 6 (Reuters) - Canada’s main stock index fell to its lowest in 2-1/2 weeks on Tuesday as shares of energy producers dropped after the price of oil tested new lows on concerns about oversupply.

The release of sluggish U.S. economic data, with new orders for factory goods dropping for a fourth straight month in November, contributed further to the bearish mood.

Oil prices touched a 5-1/2-year low, down about 55 percent since June. Shares of energy companies have lost more than a third of their value during this time.

Hit by the energy-sector weakness, the benchmark Canadian index extended its losses after recording its biggest single-day drop in about 20 months on Monday.

“It’s pretty bleak. This is a once-in-a-generation selloff in the crude oil price,” said Colin Cieszynski, chief market strategist, CMC Markets.

“I don’t think we’ve seen all of the adjustments work their way through, whether it’s changes to capital spending, dividends and costs to reflect the new reality,” he added. “We’re still at the beginning of a very choppy phase of readjustment in the oil patch.”

The Toronto Stock Exchange’s S&P/TSX composite index was down 76.37 points, or 0.53 percent, at 14,316.33. Eight of the 10 main sectors on the index were in the red.

Among shares of energy producers, Suncor Energy Inc shed 1.3 percent to C$35.26, and Canadian Natural Resources Ltd fell 0.7 percent to C$33.55.

Financials, the index’s most heavily weighted sector, gave back 1.2 percent. Toronto Dominion Bank declined 1.3 percent to C$53.26, and Bank of Nova Scotia was down 1.9 percent at C$63.09.

The negative sentiment for equities drove the bullion price higher, sending shares of gold miners up nearly 4 percent. Goldcorp Inc jumped 6 percent to C$23.53, and Barrick Gold Corp added 2.7 percent to C$13.16. (Editing by W Simon)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below