(MENAFN- ProactiveInvestors) Canadian shares extended slide for a third day after yesterday’s decision by OPEC to not reduce output levles nudged down crude prices and lifted the U.S. dollar which in turn weighed on raw-material prices.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.9 percent to 14795.91 at 12:33 p.m. in Toronto. Five shares declined for every three stocks that advanced as five share groups out of 10 main industries retreated.
The energy sector the main index's second most heavily weighted group surrendered 2.1 percent. Athabasca Oil () an oil-sands developer focused on Alberta sank 4.4 percent to C$2.47. () the Canada-based oil company focused on Colombia plummeted 14 percent to C$10.87.
(TSE:CP) which transport crude by rail dived 6.8 percent to C$219.92.
() (NYSE:ENB) Canada’s largest pipeline company fell 0.5 percent to C$52.53 after saying it has agreed to buy an 80 percent stake in two U.S. wind farms from German power utility E.ON SE (OTCMKTS:EONGY).
Pembina Pipeline (TSE:PPL) an oil and gas pipeline operator fell 2 percent to C$40.15. The Calgary Alberta-based company said it plans to invest C$105 million to build a new facility and expand its gas processing capacity at its Musreau facility in west central Alberta.
The Organization of Petroleum Exporting Countries yesterday kept its production ceiling unchanged at 30 million barrels a day triggering the worst rout in Canadian energy shares in three years.
WTI for January delivery dropped 6.7 percent to $68.77 on the New York Mercantile Exchange compared with the Nov. 26 close. There was no floor trading yesterday because of the Thanksgiving holiday and transactions from yesterday will be booked today for settlement purposes. Floor trading will close at 1:30 p.m. today. Prices are down 10 percent this week.
The materials sub-index which includes mining shares lost 2.2 percent as gold futures headed for the biggest drop in three weeks. (TSE:ABX) declined 4.5 percent to C$13.66 and (TSE:G) eased back 3.2 percent to C$22.74.
Gold futures for February delivery fell 1.5 percent to $1179.40 an ounce at 11:41 a.m. on the Comex in New York.
The financials group which accounts for approximately 35 percent of the main measure more than any other group rose 0.3 percent. () which has the heaviest weighting in the index inched up 0.2 percent to C$83.51. Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value added 0.3 percent to C$57.69.
(TSE:) rose 0.7percnet to C$53.70 after the nation’s largest telecommunications company said it would buy its mobile products distributor Glentel () for about C$670 million in cash and stock.
The junior () dropped 1.4 percent to 745.22 at 11:58 a.m. in Toronto. The 408-company measure has lost 18 percent this year.
In economic news Canada’s economy grew faster than economists forecast in the third quarter as exports of crude oil grew and consumers opened their wallets for cars and other big-ticket items. Gross domestic product rose at a 2.8 percent annualized pace from July to September Statistics Canada said today. However growth slowed from the second quarter’s 3.6 percent expansion.
In currency the Canadian dollar fell sharply against the U.S. dollar on Friday as tumbling U.S. crude prices was the dominant driver for the currency overshadowing higher-than-expected third-quarter Canadian growth figures. The loonie traded at C$1.1405 against the greenback or 87.68 U.S. cents weaker than yesterday’s close at C$1.1332 or 88.25 U.S. cents.
In the U.S. market shares wavered between gains and losses as crude oil extended a four-year low and the holiday shopping season ramps up. The S&P 500 (INDEXSP:.INX) was little changed at 11:12 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) rose 0.3 percent while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) gained 0.5 percent. Most followed shares included Wal-Mart Stores Halliburton American Airlines and HSBC
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