TSX drops as oil price slump drags down energy producers Suncor stumbles

(MENAFN- ProactiveInvestors) Canadian shares fell as signs of increasing U.S. crude inventories put pressure on the price of oil and shares of energy companies.

The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.4 percent to 14998.39 at 12:30 p.m. in Toronto. Five shares declined for every four stocks that advanced as two out of ten main groups retreated.

The energy sector the main index's second most heavily weighted group tumbled 3.3 percent as oil Canada’s largest export plunged more than 5 percent today. Suncor Energy (TSE:SU) Canada's largest oil sands producer stumbled 4.7 percent to C$37.69. Canadian Natural Resources Limited (TSE:CNQ) Canada’s largest independent energy company slid 3.7 percent to C438.13.

West Texas Intermediate crude for March delivery slipped 5.6 percent to trade at $50.08 a barrel on the New York Mercantile Exchange.

The financials group which accounts for approximately 34 percent of the main measure more than any other group skidded 0.1 percent.

Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value surrendered 1.9 percent to C$41.81. Royal Bank of Canada (TSE:RY) the company with the highest weighting in the index decreased 0.4 percent to C$74.48.

TMX Group (TSE:X) the owner of the Toronto Stock Exchange fell 3.6 percent to C$46.43 after posting a lower-than-expected profit in the fourth quarter as a slump in prices of copper oil and other commodities that hurt listings on the bourse.

The materials sub-index which includes mining shares gained 1.2 percent as gold and other metals prices climbed. Goldcorp (TSE:G) Canada’s largest gold miner by market value advanced 2.1 percent to C$30.24. Barrick Gold (TSE:ABX) the second-largest jumped 3.3 percent to C$16.22.

Gold for April delivery added 0.6 percent to $1268.10 an ounce. March silver rose 1.5 percent to $17.58 an ounce.

Newalta (TSE:NAL) slumped 6.2 percent to C$13.67. The Calgary company said it has implemented a number of cost-cutting initiatives including cutting about 180 jobs or about 15 percent of its overall workforce and consolidating offices in a bid to improve margins. Newalta which provides environmental services said the sale of its industrial division remains on track to close in the first quarter.

The junior S&P/TSX Venture Composite Index (CVE:OSPVX) fell 0.3 percent to 690.03 at 12:19 p.m. in Toronto.

In economic news the pace of purchasing activity in Canada contracted in January to fall to its lowest level in 5-1/2 years data from the Ivey Purchasing Managers Index showed today. The seasonally adjusted index tumbled to 45.4 from 55.4 in December well short of analysts' expectations for 53.9. It was the lowest level since May 2009. 

In the U.S. market shares seesawed as declines in pharmaceutical and energy companies outstripped data showing an expansion in service industries. The S&P 500 (INDEXSP:.INX) was flat at 2050.33 at 11:45 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) rose 0.3 percent to 17727 while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) edged up 0.1 percent to 4733.49. Most followed shares included  GM Staples Chipotle Mexican Grill J.M. Smucker Toyota Gilead Sciences Merck Walt Disney and MaxLinear.

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