(MENAFN- ProactiveInvestors) Canadian shares declined as investors were cautious ahead of comments expected to clarify the U.S. central bank’s plans to raise interest rates and as energy producers slipped with oil headed for a bear market.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.2 percent to 14863 at 12:41 p.m. in Toronto. Six out of the ten share groups were in the negative territory. The 250-company benchmark gauge is up 1.5 percent this year.
The Fed is expected to release a statement this afternoon which will be followed by a press conference by Chair Janet Yellen. Sentiment in Canada is often influenced by news out of the United States Canada's largest trading partner.
The materials sub-index which includes mining shares dropped 1 percent as gold prices were steady today staying near four-month lows. (TSE:G) Canada’s largest gold miner by market value fell 1.3 percent to C$1.3 percent while (TSE:ABX) the second-largest gained 2.4 percent to C$13.48.
() a Canadian oil and natural gas producer gained 4.3 percent to C$13.93 after posting a fourth-quarter profit of C$0.65 per share compared with a small loss a year earlier while cash flow improved to C$0.54 from C$0.39. The Calgary-based company said is projecting 11 percent production growth and plans to maintain its current monthly dividend.
Spot gold was unchanged at $1148.10 an ounce by 10:14 a.m. just above its lowest since November 7 at $1142.86 hit yesterday. U.S. gold futures for April delivery were down 0.1 percent at $1147.30 an ounce.
The financials group which accounts for approximately 34 percent of the main measure more than any other group skidded 0.6 percent. () which has the heaviest weighting in the index surrendered 0.6 percent to C$75.69. Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value dropped 0.4 percent to C$53.90.
The energy sector the main index's second most heavily weighted group rose 0.5 percent even as oil continued its slide today sinking to $42 a barrel at mid-morning. Energy (TSE:SU) Canada's largest oil sands producer dropped 0.2 percent to C$35.05. Limited () Canada’s second-largest energy producer ticked up 0.2 percent to C$37.70.
() fluctuated between gains and losses as the largest private oil producer in Colombia suspended dividends while reporting a quarterly loss amid falling crude prices.
Athabasca Oil () an oil-sands developer focused on Alberta gained 6.6 percent to C$1.93 after saying it will separate the roles of the chairman and chief executive as of April 20 with Thomas Buchanan remaining as chairman and President Rob Broen taking the CEO role. It also said it has ended its cost-structure review and has cut costs in all areas including a reduction in its head-office staff by about 50 percent since the start of 2014.
West Texas Intermediate a key North American crude futures contract was down $1.09 to $42.38 a barrel a fresh six-year low. Western Canada Select a key Canadian contract bounced up $1.20 to $30.91.
The junior () rose 0.1 percent to 659.61 at 12:52 p.m.
In economic news Canadian wholesale sales in January fell by the most in six years on plummeting shipments of cars. Sales fell 3.1 percent to C$53.7 billion the lowest level since August Statistics Canada said in Ottawa today. Auto-related wholesalers recorded an 11.3 percent decline.
In currency the Canadian dollar weakened to a six-year low as the price for crude oil the country’s largest export tumbled and speculation built for the U.S. to signal it is closer to raising interest rates. The loonie depreciated as much as 0.4 percent to C$1.2835 per U.S. dollar its lowest level since March 2009. One loonie buys 78.09 U.S. cents.
In the U.S. market shares fell as investors bet the will signal a change in its stance on the timing for higher interest rates. The S&P 500 (INDEXSP:.INX) skidded 0.4 percent to 2066 at 11:55 a.m. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) sank 0.6 percent to 17750 and the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) declined 0.3 percent to 4925. Most followed shares included Adobe Quiksilver Willbros Group and Pandora.
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