June 20, 2012 / 8:45 PM / 7 years ago

CANADA STOCKS-TSX edges lower as energy shrs weaken after Fed

* TSX down 29.02 points, or 0.25 percent, at 11,759.34
    * Weakens from Tuesday's five-week high
    * Softer oil prices hit energy stocks
    * Fed meeting disappoints stimulus hopes

    By Allison Martell
    TORONTO, June 20 (Reuters) - Toronto's main stock index
edged down on Wednesday, led lower by energy stocks, which
tracked a decline in oil prices after the U.S. Federal Reserve
extended a program to stimulate the economy but offered no clues
on further easing.
    The resource heavy market ended weaker after the Fed said it
would extend long-term bond-buying through "Operation Twist" but
stopped well short of further quantitative easing.
    "Everything was Bernanke-related, and to a large extent the
result of the strong day that we had yesterday," said Pat
McHugh, Canadian equity strategist at Manulife Asset Management.
"Yesterday we overreacted in terms of anticipating something
from the Fed."
    Canadian stocks hit a five-week high on Tuesday, as
financial and energy shares rallied on hopes the Fed would
announce further monetary stimulus.
    "We had a very good day yesterday, especially in Toronto,
and I think today maybe it's just more of the malaise that we've
had for quite awhile here," said John Kinsey, portfolio manager
at Caldwell Securities Ltd.     
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 29.02 points, or 0.25 percent, at
    The heavyweight energy group, down 1.29 percent, played the
biggest role of any sector in leading the market lower. Oil
prices slid after data showed U.S. crude inventories
unexpectedly rose and traders were disappointed by the Fed
    Suncor Energy was down 1.7 percent at C$29.65, and
Canadian Natural Resources fell 1.9 percent to C$28.30.
The two companies played the biggest role of any two stocks in
leading the Toronto market lower.
    Helping support the Canadian market was convenience store
operator Alimentation Couche-Tard Inc. Its stock rose
5.2 percent to C$45.25, the biggest percentage gain of any
company in the index.
    The retailer said it had reached the 90 percent shareholder
acceptance level in its bid for Norway's Statoil Fuel and Retail
ASA, which will allow it to more easily incorporate
the European acquisition.
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