(MENAFN- ProactiveInvestors) Canadian shares tumbled more than 1 percent hitting a two-and-a-half week low as energy producers crumbled with the U.S. oil benchmark reaching new lows dropping over 4 percent.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 1.2 percent to 14223.28 at 12:39 p.m. in Toronto. This comes a day after the Canadian index recorded its biggest single day drop in about 20 months.
The energy sector the main index's second most heavily weighted group crashed 1.9 percent. Energy (TSE:SU) Canada's largest oil sands producer slumped 1.6 percent to C$35.13. () the country's second-largest oil and gas company declined 2.2 percent to C$33.07.
The declines came as oil prices touched an over five-and-a-half year low down about 55 percent since June. West Texas Intermediate for February delivery dropped 3.7 percent to $48.17 a barrel on the New York Mercantile Exchange at 12:51 pm.
Oil fell as surging supply signalled that the global glut that drove crude into a bear market will persist. Other factors like ongoing strength in the U.S. dollar and concerns about Greek debt means oil prices are expected to be under significant pressure for the first half of this year.
The bearish sentiment was also helped by sluggish US data including a 0.7% drop in factory orders in November the fourth straight month of decline.
The materials sub-index which includes mining shares rose 2.7 percent as gold futures rose for the third straight session amid a global equities selloff. Gold futures for February delivery advanced 1.2 percent to $1217.90 an ounce at 1:00pm on the Comex in New York. Bullion rose as Greece’s political crisis and a decline in equities spurred demand for the precious metal as an alternative asset.
Financials the index's most heavily weighted sector slid 1.9 percent. () the company with the highest weighting in the index eased back 1 percent to C$78.09.
Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value gave up 2.3 percent to C$53.72.
In corporate activity () said it has set a 2015 capital budget of up to $185 million to focus on the growth of its core northeast British Columbia Montney resource and is targeting a 13 percent year-over-year increase in its fourth quarter average production volumes. Shares slid 9.3 percent to C$5.35 in Toronto.
(TSE:BNK) said Tuesday that it posted 14 percent production growth last year averaging 20687 barrels of oil per day. In November the company chose to shut-in production from several higher water-cut wells due to reduced water handling capacity after a disposal pump failure. Shares tanked over 12.8 percent to C$2.58.
's () shares rose 1.5 percent to C$25.24 after the company announced it has cut its planned 2015 capital spending by 28 percent from 2014 levels citing lower oil prices. The Calgary Alberta-based company is now planning to spend $1.45 billion in 2015 which is still expected to generate average daily production of 152500 barrels of oil equivalent per day (boe/d) a nine percent increase over 2014 guidance.
Agrium () (NYSE:AGU) said it has agreed to sell its Niota and Meredosia storage and distribution facilities for about $50 million to subsidiaries of Trammo.
The junior () fell 1.4 percent to 684.42 at 12:54 p.m. in Toronto. The 403-company measure where energy and materials producers account for approximately 70 percent of its weighting is down 0.22 percent this month.
In the U.S. market shares dropped sending the Standard & Poor’s 500 Index (INDEXSP:.INX) down 1.2 percent at 1997 at 1:15 p.m. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) lost 1.2 percent while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) slid 1.5 percent. Most followed shares included () () Minerva Neurosciences (NASDAQ:NERV) Michael Kors () () Xoom () and ().
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.