Alberta vote burns TSX energy stocks

TORONTO • Energy stocks led the Toronto stock market to a triple-digit drop Wednesday as investors weighed the potential impacts of the election of a majority NDP government in Alberta.

Experts say investors are reacting to the uncertainty over how an inexperienced government will balance the budget and whether policies affecting the energy sector will change. “Sometimes, it’s better to have the devil you know than the devil you don’t,” said Glenn Paradis, portfolio manager at Canoe Financial.

The S&P/TSX composite index closed down 150.05 points at 15,023.89. The market’s energy sector was the lead decliner, losing nearly three per cent, even as crude oil climbed higher.

In New York, markets were down after U.S. Federal Reserve chairwoman Janet Yellen called stock prices “quite high” and data showed the pace of private-sector hiring slowed in April.

The Dow Jones Average lost 86.22 points to 17,841.98, the Nasdaq fell 19.69 points to 4,919.64 and the S&P500 was off 9.31 points at 2,080.15.

The loonie was up 0.22 of a U.S. cent at 83.06 cents, underperforming compared with the currencies of other oil-producing nations. “The Canadian dollar is lagging behind some of the other oil currencies, on a day when oil is up pretty good,” Cieszynski said.

Crude oil was up 53 cents at US$60.93 a barrel and gold was down US$2.90 at US$1,190.30 an ounce.