(MENAFN- ProactiveInvestors) Canadian shares seesawed as losses among energy producers following a drop in oil prices countered data showing the Chinese economy expanded faster than estimated.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) was flat at 14312.92 at 12:20 p.m. in Toronto. Almost two shares declined for every stock that advanced with eight out ten main share groups down.
China’s gross domestic product grew 7.3 percent in the three months through December from a year earlier compared with the 7.2 percent economists forecast in a survey conducted by Bloomberg News.
The energy sector the main index's second most heavily weighted group fell 2.2 percent as oil dropped. Energy (TSE:SU) Canada's largest oil sands producer fell 2.1 percent to $34.84. Limited () Canada’s largest independent energy company gave up 0.9 percent to C$34.09.
() slumped 6.5 percent to C$6.23 after lowering its 2015 spending budget guidance to C$152 million from C$215 million and reducing its output view by 3 percent to 16600 barrels of oil equivalent a day.
() fell 2.5 percent to C$6.51 after the oil and natural gas company cut its 2015 capital spending and production guidance and sold non-core assets in response to the rapid deterioration of oil and gas commodity prices.
WTI for February delivery which expires today decreased 4.2 percent to $46.64 a barrel at 10:46 a.m. on the New York Mercantile Exchange. Brent for March settlement fell 0.8 percent to $48.46 a barrel on the London-based ICE Futures Europe exchange. Oil slid after Iraqi crude production surged to a record and the International Monetary Fund cut its global growth outlook.
The materials sub-index which includes mining shares gained 2.8 percent as gold futures headed for the longest rally in 11 months. (TSE:G) Canada’s largest gold miner by market value added 2.8 percent to C$29.50. (TSE:ABX) the second-largest jumped 6.8 percent to C$15.17.
Pan American Silver (TSE:PAA) the world's fourth-largest silver producer gained 3.9 percent to C$13.79 after saying silver production for 2014 was a record 26.11 million ounces up slightly from a year earlier and gold production was a record 161500 ounces up 8 percent year-over-year. The miner said it expects similar consolidated silver production a “modest” rise in gold production and largely flat cash costs for 2015.
Gold futures for February delivery climbed 1.1 percent to $1291.50 an ounce at 11:06 a.m. on the Comex in New York. Through Jan. 16 the price advanced 7.8 percent this year. In 2014 gold declined 1.5 percent.
Financials the index's most heavily weighted sector eased back 0.2 percent. () which has the heaviest weighting in the index was flat at C$75.82. Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value
(TSE:CP) rose 1.4 percent to C$218.3 after the nation's second-largest rail operator said it has formed a joint venture with real-estate firm Dream Unlimited () to unlock the value of the railroad company’s surplus real-estate assets.
The junior () rose 0.8 percent to 678.24 at 12:32 p.m. in Toronto.
In economic news Canadian factory sales fell faster than economists predicted in November with the second straight decline ranging from automobiles to food. Statistics Canada said sales fell 1.4 percent to C$51.5 billion. The agency also lowered its estimates for the prior two months. Economists forecast a 0.7 percent November decrease according to a Bloomberg survey.
Governor Stephen Poloz will provide his latest estimates for inflation and growth tomorrow along with a decision on interest rates.
In the U.S. market shares dropped as as a slide in oil prices hit energy companies. The S&P 500 (INDEXSP:.INX) slipped 0.5 percent to 2009.40 at 11:40 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) skidded 0.7 percent to 17389.39 while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) surrendered 0.5 percent to 4612.06. Most followed shares included Halliburton Alibaba Group and Clean Harbours.
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