Canada’s main stock index closed flat Wednesday despite rising energy shares and materials stocks after commodity prices for oil and gold rose.
Earlier, energy stocks fluctuated despite a rise in oil prices as OPEC and its allied producers discussed cutting supply.
The Toronto Stock Exchange’s S&P/TSX Composite Index closed up 1.34 points, or 0.01 per cent, at 15,133.12.
The energy sector rose 1 per cent as Suncor gained 2.7 per cent and Imperial Oil was up 2.3 per cent. Tourmaline Oil rose 4.4 per cent.
Oil rose nearly 2 per cent on Wednesday, recouping some of the previous session’s heavy selloff, on the growing prospect that the Organization of the Petroleum Exporting Countries and allied producers would cut output at a meeting next month to prop up the market.
Brent crude was up US$1.03, or 1.6 per cent, at US$66.50 a barrel, after hitting a session high of US$67.63. U.S. crude futures rose 85 cents US, or 1.5 per cent, to US$56.54 a barrel, after declining on Tuesday for a 12 consecutive sessions to the lowest since November 2017.
The materials sector rose 1 per cent with Ivanhoe Mines gaining 5.6 per cent, Agnico Eagle up 3.9 per cent and Goldcorp up 3.2 per cent.
Gold rose 1 per cent on Wednesday, helped by a slight retreat in the dollar following a rally and as some investors covered their short positions after the metal held the key US$1,200 level. Spot gold was up 1 per cent at US$1,214.14 per ounce. This was the metal’s biggest one-day gain in nearly two weeks. Prices had slipped to their lowest since Oct. 11 at US$1,195.90 in the previous session. U.S. gold futures settled up US$8.70, or 0.72 per cent, at US$1,210.10.
Consumer stocks rose 0.6 per cent, tech stocks added 0.4 per cent and utilities were up 0.1 per cent.
Laggards on the index included the health care sector, down 5 per cent, as marijuana stocks slid. Canopy Growth fell 11.3 per cent after it posted a bigger-than-expected quarterly net loss. Aurora Cannabis Inc. was down 6.6 per cent, while Aphria Inc. sat 7.3 per cent lower.
Also helping the main index was Tahoe Resources Inc., which rallied 50 per cent, after Pan American Silver Corp. agreed to buy the miner for $1.07-billion in cash and stock deal. Pan American Silver Corp. fell 10.3 per cent.
Canada Goose Holdings Inc. jumped 9.8 per cent after the luxury apparel maker reported better-than-expected quarterly profit as revenue from its online and branded stores more than doubled, helping it raise its forecast for the full year.
U.S. stocks fell on Wednesday, with the S&P 500 notching a fifth straight day of losses as financial stocks were hit by fears of tightening regulations on the banking industry.
Based on the latest available data, the Dow Jones Industrial Average fell 204.84 points, or 0.81 percent, to 25,081.65, the S&P 500 lost 20.36 points, or 0.75 percent, to 2,701.82 and the Nasdaq Composite dropped 64.48 points, or 0.9 percent, to 7,136.39.
Financial stocks fell after Democrat Maxine Waters, who is expected to become chair of the House banking committee, said banking regulations would not be eased any further on her watch, according to a CNBC report.
The financial sector dropped 1.4 per cent and was the biggest drag on the S&P 500.
Meanwhile, the technology sector added to its recent losses and it was down 1.3 per cent as shares of Apple Inc. descended for a fifth consecutive day on mounting concerns that iPhone sales have hit a wall. At their session low, Apple shares were down more than 20 per cent from their record high.
Apple’s 2.8 per cent drop helped drag the S&P 500 technology index down 1.3 per cent.
The market had started on a buoyant note as oil prices rebounded and data showed consumer prices rose only as much as expected last month, easing fears of overheating inflation and faster interest rate hikes.
But sentiment turned lower as the session wore on, with investors citing ongoing concerns about a slowdown in global economic growth prospects as reason to remain cautious.
“A cocktail of uncertainty regarding global growth as well as trade-related issues has put market speculators on their heels,” said Chad Morganlander, senior portfolio manager at Washington Crossing Advisors in Florham Park, New Jersey.
PG&E Corp slumped 21.6 per cent after the utility warned it could face “significant liability” in excess of its insurance coverage if its equipment was found to have caused the blaze raging in Northern California.
Reuters