Tags: Canada | Stock | Market | oil

Canada's Stock Market Plunges as Oil Slides

Wednesday, 10 Dec 2014 05:23 PM

Canadian stocks sank the most in 17 months Wednesday, sending the benchmark gauge to the lowest level since February, as crude resumed a selloff after OPEC said demand will drop next year.

Penn West Petroleum Ltd. and Crescent Point Energy Corp. plunged at least 9.8 percent as energy producers sank to a 2012 low. Laurentian Bank of Canada dropped 5.3 percent to pace declines among financial services stocks. All 10 main groups in the benchmark index lost at least 0.4 percent.

The Standard & Poor’s/TSX Composite Index fell 342.78 points, or 2.4 percent, to 13,852.95 at 4 p.m. in Toronto. The equity gauge has dropped 4.3 percent this week, paring its advance this year to 1.7 percent. Trading volume was 38 percent above the 30-day average.

Oil, bank and raw-materials are the biggest laggards in Canada for the first time since at least 1988, fueling concern the nation’s economy is fading just as the U.S. is taking off. The three industries, which collectively account for two-thirds of the S&P/TSX, are the worst performers among 10 groups this year, led by a 18 percent slump in energy, according to data compiled by Bloomberg.

Energy Slide

Penn West tumbled 13 percent to C$2.67, a 1996 low, and Crescent Point plunged 9.8 percent to C$22.50 as energy stocks sank 5.2 percent as a group. The energy index has fallen 32 percent from a high in June.

West Texas Intermediate crude fell 4.5 percent to settle at $60.94 in New York and Brent dropped 3.9 percent to a five-year low as the Organization of Petroleum Exporting Countries lowered its estimate for 2015 demand for its oil by about 300,000 barrels a day to 28.9 million.

Oil has collapsed into a bear market amid the highest U.S. output in more than three decades and signs of slowing global demand growth. Prices now are below what 10 out of OPEC’s 12 members need for their annual budgets to break even, according to data compiled by Bloomberg. Kuwait and Qatar are the exceptions.

Canadian Pacific Railway Ltd. slipped 4.4 percent to C$201.88 and Canadian National Railway Co. retreated 4.1 percent to C$73.62 as industrial stocks lost 3.1 percent.

Laurentian Bank of Canada declined 5.3 percent to C$47.60, the biggest drop since June 2011. The bank reported fourth-quarter profit that missed analysts’ estimates on charges from cutting jobs and reorganizing businesses.

The nation’s largest lenders plunged the most in three years last week after posting disappointing earnings.

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Canadian stocks sank the most in 17 months Wednesday, sending the benchmark gauge to the lowest level since February, as crude resumed a selloff after OPEC said demand will drop next year.
Canada, Stock, Market, oil
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2014-23-10
Wednesday, 10 Dec 2014 05:23 PM
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