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CANADA STOCKS-TSX slips as energy stocks, hurt by oil, lead declines
June 2, 2017 / 8:57 PM / in 5 months

CANADA STOCKS-TSX slips as energy stocks, hurt by oil, lead declines

(Adds details on specific stocks, updates prices)

* TSX down 27.16 points, or 0.18 percent, at 15,442.75

* Six of TSX’s 10 main groups fall; energy down 1.7 percent

* Index gains 0.17 percent on week

By Solarina Ho

TORONTO, June 2 (Reuters) - Canada’s main stock index fell on Friday, dragged lower by weakness in energy stocks as oil prices fell and a modest dip in heavyweight financial shares after U.S. jobs growth came in below expectations.

The Toronto Stock Exchange’s S&P/TSX composite index close 27.16 points down, or 0.18 percent, at 15,442.75. Of the index’s 10 main industry groups, six were in negative territory.

The index gained 0.17 percent on the week.

“Just about everything here is hitting a rough patch,” said John Kinsey, portfolio manager at Caldwell Securities Ltd. “We may be hitting the summer doldrums a little early.”

The energy group gave up 1.7 percent, as oil prices fell on concerns that U.S. drilling could accelerate after President Donald Trump’s decision to abandon the Paris climate pact, exacerbating a persistent global glut.

Cenovus Energy Inc fell 5.3 percent to C$11.61 and was the most influential drag on the index.

Cardinal Energy Ltd sank 8 percent to C$5.31 after agreeing to buy Canadian light oil assets from Apache Corp for C$330 million ($244 million) in cash.

The financials group slipped 0.1 percent, weighed down most heavily by insurers as a smaller-than-forecast increase in U.S. payrolls growth in May pushed bond yields lower.

Manulife Financial Corp pared earlier losses, but still ended 1 percent lower at C$23.58. Rival Sun Life Financial Inc slipped 0.9 percent to C$44.28.

Kinsey said lingering concerns over the Canadian housing market also factored into the group’s performance. Financial stocks have retreated about 7 percent since hitting 2017 highs.

Canadian exports climbed to a record in April and first-quarter labor productivity approached a three-year high, data showed, offering further evidence the domestic economy is recovering after a long slump caused by low oil prices.

On the upside, Bombardier Inc shares jumped to a near four-month high, rising 3.6 percent to C$2.56. The plane and train maker was the most shorted stock on the TSX as of May 15, though some of the short positions have recently been covered, TMX data showed.

Canada Goose surged 15.8 percent to C$29.17 after the maker of expensive winter jackets reported a smaller-than-expected quarterly loss in its first earnings report as a publicly listed company.

Asanko Gold Inc pared earlier gains but still finished up 5 percent to C$2.12, as it recovered some of its sharp losses since the release of a short-seller report this week ($1 = 1.3520 Canadian dollars) (Reporting by Solarina Ho and Alastair Sharp; Editing by Paul Simao and James Dalgleish)

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