TSX falls as energy sector drops, U.S. Fed issues bleak forecast
Reuters
Published Jun 11, 2020 09:41
Updated Jun 11, 2020 11:18
(Reuters) - Canada's main stock index fell on Thursday as the energy sector dropped 4.5% with oil prices falling due to piling U.S. inventories, while a sobering economic outlook from the Federal Reserve dented risk appetite.
The U.S. Fed on Wednesday projected the U.S. economy would shrink 6.5% in 2020 and the unemployment rate would still be 9.3% at the year's end.
At 9:51 a.m. ET (13:51 GMT), the Toronto Stock Exchange's S&P/TSX composite index (GSPTSE) was down 339.55 points, or 2.16%, at 15,361.78.
The energy sector (SPTTEN) dropped 4.5% as U.S. crude (CLc1) prices were down 7.6% a barrel, while Brent crude (LCOc1) lost 6.5%, dragged down by another record build-up in U.S. crude inventories. [O/R]
The financials sector (SPTTFS) slipped 2.9%, while the industrials sector (GSPTTIN) fell 2.5%.
The materials sector (GSPTTMT), which includes precious and base metals miners and fertilizer companies, stayed flat, even though gold futures GCc1 rose 0.6% to $1,723.4 an ounce. [GOL/]
On the TSX, 22 issues were higher, while 206 issues declined for a 9.36-to-1 ratio in favor of the losers, with 62.49 million shares traded.
The largest percentage gainers on the TSX was Hexo Corp (TO:HEXO), jumping 11.1% after the pot producer's third-quarter revenue soared 70% to C$22.1 mln.
Hexo was followed by Transcontinental Inc (TO:TCLa), which rose 2.7%.
Secure Energy Services Inc (TO:SES) fell 12.2%, the most on the TSX, followed by Shawcor Ltd (TO:SCL), down 11.3%.
The most heavily traded shares by volume were Hexo Corp, Canadian Natural Resources Ltd (TO:CNQ), down 3.1%, and Air Canada (TO:AC), down 6.2%.
The TSX posted no new 52-week high or low.
Across all Canadian issues there were six new 52-week highs and four new lows, with total volume of 103.58 million shares.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.