(MENAFN- ProactiveInvestors) Canadian shares retreated after data showed the world’s eleventh-largest economy suffered its biggest contraction in nearly six years in the first quarter.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.5 percent to 15029.74 at 12:35 p.m. in Toronto. Two shares declined for every issue that advanced as all of the ten share groups were in the negative territory.
Statistics Canada says the economy contracted at an annual pace of 0.6 per cent in the first three months of the year as weaker oil prices had a more severe impact than economists expected. The drop exceeded all 22 economist forecasts in a Bloomberg News survey in which the median call was for an expansion of 0.3 percent.
It was the first time real GDP dipped below zero since the fourth quarter of 2011 and the biggest slide into negative growth since the second quarter of 2009.
Financials the index's most heavily weighted sector dropped 0.9 percent. () which has the heaviest weighting in the index surrendered 1.3 percent to C$79.02. Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value gave back 1.7 percent to C$54.43.
() Canada’s third-largest lender by assets rose 0.9 percent to C$65.12 after reporting a fiscal second-quarter profit that exceeded market expectations fuelled by strong results from its Canadian banking division.
The energy sector the main index's second most heavily weighted group inched down 0.2 percent even as oil rose more than 3 percent. Energy (TSE:SU) Canada's largest oil sands producer edged down 0.7 percent to C$36.23. Limited () Canada’s second-largest energy producer retreated 0.6 percent to C$38.03.
July Brent was up 3.6 percent at $64.86 a barrel. U.S. crude was up 3.4 percent at $59.63.
The materials sub-index which includes mining shares lost 0.7 percent even as gold edged up from yesterday's 2 1/2-week low.
Potash Corp. of Saskatchewan (TSE:POT) fell 1.7 percent to C$39.53 as TD downgraded the stock to “hold” from “buy” saying global potash prices have been moving sideways at best so far this year despite a number of supply curtailments.
(TSE:TCK.B) fell 2.5 percent to C$14.71 as Canada’s largest diversified mining company by market value said it would temporarily idle activities at its six Canadian coal operations due to weak pricing and demand for steelmaking coal.
(TSE:G) Canada’s largest gold miner by market value was flat at C$22.14. (TSE:ABX) the second-largest surrendered 0.8 percent to C$14.80.
Spot gold was up 0.4 percent at $1192.76 an ounce. U.S. gold futures for June delivery were up $4.50 an ounce at $1193.30.
The junior () fell 0.4 percent to 689.50 at 12:34 p.m.
In currency the Canadian dollar approached the lowest level in more than a month following the GDP data. The loonie fell 0.4 percent to C$1.2480 per U.S. dollar. It touched C$1.2538 yesterday the lowest level since April 15. One loonie buys 80.13 U.S. cents.
The Bank of Canada held its kept borrowing rate at 0.75 percent on Wednesday saying consumer demand “is holding up well” and that current stimulus is enough to prevent a downturn.
In the U.S. market shares traded lower today as investors digested economic data and remained cautious on continued concerns about Greece. The S&P 500 (INDEXSP:.INX) skidded 0.4 percent to 2111 at 11:50 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) sank 0.6 percent to 18025 and the tech-heavy Nasdaq 100 (INDEXNASDAQ:NDX) slipped 0.4 percent to 4518. Most followed shares included Ulta Salon Deckers Outdoor Heron Therapeutics and Greif.
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