Canada Stocks: Toronto market skids as oil prices tumble

Cogeco Communications

12/12/2023 21:38

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      TSX ends down 0.4%
    

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      Posts its lowest close since Dec. 1
    

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      Energy falls 2.7% as oil settles 4% lower
    

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      Materials group loses 1.9%
    

  
 (Updates at market close)
    By Fergal Smith and Nivedita Balu
       Dec 12 (Reuters) - Canada's main stock index fell on
Tuesday as a drop in oil prices weighed on energy shares and
investors assessed the latest U.S. inflation data for clues on
the Federal Reserve's policy outlook.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended down 84.52 points, or 0.4%, at 20,233.84, its
lowest since Dec. 1.
    "The obvious culprit is the energy group and that's on the
back of significant decline in oil prices," said Elvis Picardo,
a portfolio manager at Luft Financial, iA Private Wealth.       
    The energy sector was down 2.3% as the price of oil fell to
a 5-1/2-month low, pressured by growing concerns of oversupply.
U.S. crude futures  CLc1  were down 3.6% at 68.7 a barrel. O/R 
    "We've had a strong run (for the TSX) since the beginning of
November," Picardo said. "Hopes are still pinned on a soft
landing in the U.S. Tomorrow's FOMC announcement will be crucial
in setting the tone for the rest of the year."
    The Fed is expected to leave its policy rate on hold on
Wednesday and is seen holding off on any interest-rate cuts
until at least May of next year, after a government report on
Tuesday showed consumer prices unexpectedly edged back up in
November.
    The materials group, which includes precious and base metals
miners and fertilizer companies, was also a drag, losing 1.9%.
    Cogeco Communications  CCA.TO  fell 6% after Rogers
Communications  RCIb.TO  sold its stake in the company to
Canada's second-largest pension fund Caisse de depot et
placement du Quebec.
    Stelco Holdings  STLC.TO , Canada's biggest steelmaker, was
a bright spot. Its shares gained 7.8% after J.P.Morgan upgraded
the stock to "overweight" from "neutral".  
    Manulife Financial Corp  MFC.TO  shares added 1.6%, notching
a 15-year high, as Canada's top insurer moved to further de-risk
its long-term care business.

 (Reporting by Fergal Smith and Nivedita Balu in Toronto and
Shashwat Chauhan in Bengaluru; Editing by Ravi Prakash Kumar and
Marguerita Choy)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))