(MENAFN- ProactiveInvestors) Canadian shares retreated as a drop in oil prices and worries about the Chinese economy nudged down energy producers. The resource-heavy benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.3 percent to 14269.00 at 12:43 p.m. in Toronto. Six out of the ten major share groups were down.
The Chinese premier Li Keqiang said today that his country’s economy faces significant downward pressure this year. China is battling a real estate downturn slowing domestic demand heavy corporate and local government debt and overcapacity in many manufacturing and resource sectors. China is Canada’s second-largest partner.
The energy sector the main index's second most heavily weighted group slipped 1.3 percent as oil Canada’s largest export declined from a one-week high in London and New York. Energy (TSE:SU) Canada's largest oil sands producer lost 1.5 percent to C$35.46. Limited () Canada’s largest independent energy company decreased 1.8 percent to C$34.89.
Canelson Drilling () which operates land-based contract drilling rigs in Canada and the U.S. fell 2.8 percent to C$3.84 after cutting its quarterly dividend in half and lowering its 2015 capital budget by 80 percent.
() fell 7.1 percent to C$1.05 after the oil exploration and production company said it has suspended its monthly dividend due to slumping crude-oil prices.
West Texas Intermediate for February delivery which expires on Jan. 20 dropped as much as $1.07 to $47.62 a barrel on the New York Mercantile Exchange. Brent for March settlement slid as much as $1.12 to $49.05 a barrel on the London-based ICE Futures Europe exchange. Crude declined as Iraqi production advanced to a record compounding a global supply surplus.
The materials sub-index which includes mining shares inched down 0.3 percent as gold retreated. (TSE:ABX) the second-largest Canadian gold producer lost 1.4 percent to C$13.89.
(TSE:G) Canada’s largest gold miner by market value fell 1.9 percent to C$27.95. The Vancouver-based company said it has agreed to buy full control of () a metals exploration company for C$526 million in an all-stock deal to add an Ontario deposit that will expand its Porcupine operation in the Canadian province.
Gold for immediate delivery lost 0.6 percent to $1273.03 an ounce by 3:57 p.m. in London.
The financials group which accounts for approximately 35 percent of the main measure more than any other group was down 0.1 percent. () which has the heaviest weighting in the index was flat at C$75.51. Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value added 0.3 percent to C$50.36.
BlackBerry (TSE:BB) fluctuated betweeng and losses. Co.’s co-chief executive said his company wants to develop its partnership with BlackBerry but has no intention of acquiring the Canadian handset maker.
The junior () rose 0.8 percent to 672.61 at 12:28 p.m. in Toronto.
U.S. markets were closed today for the Martin Luther King Jr. holiday.
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