Energy stocks weigh on TSX, loonie slips
TORONTO — Canada’s main stock index closed lower Monday, weighed down by losses in the energy and gold sectors as commodity prices retreated.
U.S. financial markets were closed for Memorial Day, but international trading put more pressure on crude prices as speculation continued about a potential ramp-up in production from OPEC countries and Russia.
The reports on the potentially increased supplies, which could offset disruptions from Venezuela and Iran, have put pressure on the energy sector as the move suggests there aren’t fundamental supply constraints, said Allan Small, a senior investment adviser at Hollis Wealth.
“I think everybody knows there’s a lot of oil sloshing around, it’s just a matter of whether people want to throw it out there.”
Trading outside the U.S. for the July crude contract closed down $1.41 US a barrel at $66.47.
The drop helped push the S&P/TSX composite index down 59.53 points to close at 16016.14, with gold stocks also pulling down the index.
International trading of gold sent the August contract down $6.30 US at $1,302.70 as tensions eased concerning the North Korea-U.S. summit, Small said.
“I think the price of gold is reflecting the easing of tensions, which seems to happen every other day.”
The Canadian dollar averaged 76.92 cents US, down 0.16 of a U.S. cent, as the currency might have also felt the effect of easing oil prices, said Small.
“It didn’t get a boost when oil went higher, but it may be pulling back because oil is going lower,” he said.
“I think we’re range bound. I think that 75-76 to 80 cent range is where we’re going to be, with a few exceptions.”
Canadian Pacific Railway closed down $4.38, or 1.81 per cent, to $237.06 as the unions representing train operators and signalling workers have given CP Rail notice that they plan to strike as of 7 p.m. PDT today.
Pan American Silver Corp. closed down 93 cents or 3.98 per cent at $22.44 after the Vancouver-based miner said it had cut back operations at its northern Mexico silver mine because of security fears along the access roads.
Corus Entertainment Inc. closed down 21 cents, or 3.17 per cent, to $6.41 after it said the Commissioner of Competition had blocked the $200-million sale of its Frenchlanguage specialty channels Historia and Series+ to Bell Media Inc.
B.C. shoppers prefer local food, study finds
A study of buying preferences in B.C. says people want food that is fresh, safe to eat and supports the local economy.
The study funded by the provincial and federal governments shows people are strongly influenced by a desire to support local producers, whether they are at a grocery store or choosing an entrée at a restaurant.
A key finding says shoppers would be more inclined to buy local if the product carries an identifiable “from B.C.” logo or seal. The study also suggests consumers are increasingly turning to specialty stores, farmers’ markets and emerging options — such as subscription and delivery services — in their quest for B.C. products.
Survey respondents were 19 or older and do at least some grocery shopping in one of four major regions of the province.
B.C. Agriculture Minister Lana Popham said her ministry is building the local market for B.C. foods and that the study offers insights to help increase consumer awareness of agriculture and seafood products from the province.