(MENAFN- ProactiveInvestors - N.America) Canadian shares declined as commodity producers sank with the price of oil after Goldman Sachs Group joined other banks in lowering price forecasts for the commodity.
The Standard & Poor's/TSX Composite Index (TSE:OSPTX) slipped 0.6 percent to 14,461.09 at 12:38 p.m. in Toronto. More than two shares declined for every stock that advanced.
Goldman Sachs slashed its 2015 oil price forecasts and said rising output will outstrip demand. The decline in the price of U.S. crude oil, which has slumped 22 percent in the last three months, has hit energy shares hard.
The energy sector, the main index's second most heavily weighted group, sank 2.3 percent today as West Texas Intermediate crude fell to the lowest in almost 28 months. Suncor Energy (TSE:SU), the nation's largest energy company by market value, dropped 1.8 percent to C$38.18. Enbridge (TSE:ENB), Canada's largest pipeline company, eased back 0.3 percent to C$52.42.
Pacific Rubiales Energy (TSE:PRE) fell 4.3 percent to C$17.53 after Colombia's largest independent crude producer, reported a total exploration success rate of 72 percent in the first nine months of the year, with a total of nine wells abandoned as dry holes.
Precision Drilling (TSE:PD) slumped 8 percent to C$9.14 even as Canada's largest oil and natural gas drilling contractor posted a better-than-expected 79 percent surge in third-quarter profit.
West Texas Intermediate for December delivery declined 1 percent, to $80.18 a barrel at 11:47 a.m. on the New York Mercantile Exchange after touching $79.44, the lowest level since June 29, 2012.
The materials sub-index, which includes mining shares, lost 1 percent as gold declined for the third time in four sessions. Barrick Gold (TSE:ABX) dropped 1.1 percent to C$15.02, and Goldcorp (TSE:G) shed 0.2 percent to C$24.95.
Gold futures for December delivery lost 0.3 percent to $1,228.60 an ounce at 11:38 a.m. in New York.
Financials, the index's most heavily weighted sector, slipped 0.1 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, declined 0.5 percent to C$78.87. Toronto-Dominion Bank (TSE:TD), the second-largest bank, edged down 0.2 percent to C$54.17.
Valeant Pharmaceuticals International (TSE:VRX) rose 0.6 percent to C$146.05 after Canada's largest drug-maker said it's prepared to improve its hostile acquisition offer for Botox maker Allergan (NYSE:AGN) to at least $200 a share to win support from the target's board.
Absolute Software (TSE:ABT) gained 0.7 percent to C$6.87 after raising its quarterly dividend to 7 Canadian cents a share from 6 Canadian cents, citing "strong and sustainable" operating cash flow and potential for future growth and earnings.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) skidded 1.5 percent to 793.37 at 12:36 p.m. in Toronto.
In the U.S. market, U.S. shares were little changed as energy and commodity producers retreated while telephone and consumer-staples shares led gains. The S&P 500 (INDEXSP:.INX) slid 0.3 percent at 12:04 p.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) inched down 0.1 percent and the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) dropped 0.3 percent. Most followed shares included Merck, Allergan, Valeant Pharmaceuticals, Sarepta Therapeutics, Alibaba, Toyota, Ford, Tesla, Hewlett-Packard, Garmin, Roper Industries, and Mondelez International.
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