January 25, 2016 / 4:12 PM / 2 years ago

CANADA STOCKS-TSX drops 1 pct as oil fall drags energy stocks down

(Adds details, updates prices)

* TSX down 131.62 points, or 1.06 percent, at 12,257.96

* Eight of the TSX's 10 main groups fall

TORONTO, Jan 25 (Reuters) - Canada's main stock index fell on Monday as last week's crude-induced rally fizzled out and a fall in oil prices weighed on energy companies and financial shares.

At 10:41 a.m. EST (1541 GMT), the Toronto Stock Exchange's S&P/TSX composite index fell 131.62 points, or 1.06 percent, to 12,257.96.

Eight of its 10 main groups were in negative territory, while three-in-four stocks were lower.

The most influential weights were financials, which slipped 1.9 percent, and energy companies, which retreated 2.8 percent.

Royal Bank of Canada fell 1.6 percent to C$68.24, and Toronto-Dominion Bank declined 1.8 percent to C$50.76. Insurer Manulife Financial Corp lost 2.6 percent to C$18.23.

Oil prices fell 3 percent as Iraq announced record-high oil production feeding into a heavily oversupplied market, wiping out much of the gains made in one of the biggest-ever daily rallies last week.

Suncor Energy Inc declined 1.8 percent to C$30.78 and Canadian Natural Resources fell 2.2 percent to C$25.50.

U.S. crude prices were down 2.9 percent to $31.25 a barrel, while Brent crude lost 2.6 percent to $31.35.

The oil price rout and related Canadian dollar slide is starting to hurt corporate profits, from rail and retail to seemingly unrelated sectors like telecoms.

Earnings are projected to fall by 28.3 percent in 2016 compared to a year ago, according to Thomson Reuters SmartEstimates data.

Eldorado Gold Corp slumped 13.3 percent to C$2.80 after it said it expects to write down the value of its assets in Greece by $1.2-$1.6 billion after suspending most operations there.

Other gold miners rose as bullion gained. (Reporting by Alastair Sharp; Editing by Tom Brown)

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