Canadian Stocks Slip, Amid Declining Oil Price, Dragging Producers Lower
Canadian stocks fell as lower oil prices dragged down the shares of producers of the commodity amid concerns supply could outpace demand.
The $S&P/TSX Composite index(.SPTSX.CA$ fell 0.3% to 22,313.93 at 2:08 p.m. in Toronto. The blue chip $S&P/TSX 60 Index(.TX60.CA$ slid 0.3% to 1336.39.
Decliners outnumbered gainers 796-671, according to data compiled by moomoo. Oil & Gas sector slipped 0.8%, weighing down the index. Software makers, insurance companies and asset managers also saw their shares declined.
Citigroup analysts expect Brent crude, the global benchmark, to slump to $74 per barrel in the third quarter after averaging around $86 per barrel this quarter, according to an Opisnet report. The downward pressure on crude oil could persist after a Russian government official signaled that the Organization of Petroleum Exporting Countries and its allies (OPEC+) could trim their production cuts during the cartel's meeting in June, adding to global supply, the report showed.
$Cenovus Energy Inc(CVE.CA$ shares slid 0.8% to C$28.18. $Imperial Oil Ltd(IMO.CA$ and $Tourmaline Oil Corp(TOU.CA$ also fell.
Gold producers also declined, with $Newmont Corp(NGT.CA$ down 0.2% to C$58.45 in Toronto trading, while $Barrick Gold Corp(ABX.CA$ fell 0.3% to C$23.23. The gold miners' stocks traded in New York also slipped.
$Shopify Inc(SHOP.CA$ led losses among software stocks in Canada, tumbling 5.6%. The stock extended declines that were fueled by disappointing second quarter outlook issued by the company Thursday.
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Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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