February 10, 2016 / 10:30 PM / 2 years ago

CANADA STOCKS-TSX falls on lower oil prices, credit market uncertainty

(Adds portfolio manager comments, updates prices)

* TSX ended down 96.93 points, or 0.79 percent, at 12,185.72

* Five of the TSX’s 10 main groups were lower

By Fergal Smith

TORONTO, Feb 10 (Reuters) - Canada’s main stock index fell on Wednesday, hitting a two-week low as a drop in oil prices and credit market uncertainty weighed on energy and financial stocks.

The market closed lower for a fourth straight day despite reassurance from Federal Reserve Chair Janet Yellen about the U.S. economy’s ability to absorb a gradual rise in interest rates.

The weak oil price “continues to put pressure on the index,” said Youssef Zohny, a portfolio manager at StennerZohny Investment Partners.

U.S. crude prices fell 2 percent after stockpiles at the main U.S. delivery point hit record highs.

Canadian Natural Resources Ltd fell 2.7 percent to C$27.36, while Cenovus Energy Inc was down 8.4 percent at C$13.52. The overall energy group fell 2.7 percent.

Financial stocks fell 1.4 percent after reversing earlier gains. It included a 2.1 percent drop in the shares of Royal Bank of Canada to C$66.19.

Bank stocks are likely to remain under pressure ahead of earnings as investors worry about uncertainties surrounding energy and credit markets, according to Zohny.

Algonquin Power & Utilities Corp fell 7.8 percent to C$10.64 after announcing on Tuesday a C$3.4 billion acquisition.

The Toronto Stock Exchange’s S&P/TSX composite index closed down 96.93 points, or 0.79 percent, at 12,185.72, its lowest close since Jan. 25.

Five of the index’s 10 main groups were lower.

Information technology was among sectors that advanced, rising 1.6 percent. It was led by a 10 percent jump in shares of Open Text Corp to C$65.51.

The materials group, which includes precious and base metal miners and fertilizer companies, rose 0.2 percent.

Goldcorp Inc rose 3.5 percent to C$20.31, while Barrick Gold was also up 3.5 percent at C$16.11. (Reporting by Fergal Smith; Editing by Meredith Mazzilli and Tom Brown)

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