Canadian stocks lower as crude price slips on glut worry

GMT 05:46 2016 Saturday ,14 May

Arab Today, arab today Canadian stocks lower as crude price slips on glut worry

Canada's main stock market in Toronto
Toronto - XINHUA

Canada's main stock market in Toronto edged lower Friday as the global oil market is believed to be oversupplied and OPEC signalled the glut may increase this year.

The Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite Index lost 39.22 point, or 0.28 percent, to close at 13,748.58 points. Seven of the TSX index's eight main sub-sectors were lower.

TSX energy and mining sectors were down 0.73 percent and 1.79 percent respectively. The only positive group was health care sector, up 2.18 percent.

The most active movers included Bombardier Inc., with a 2.96 percent fall to 1.97 Canadian dollars (1.52 U.S. dollars), and Teck Resources Limited, losing 2.25 percent at 12.19 Canadian dollars.

Sirius XM Canada Holdings Inc. said that Sirius XM Holdings Inc., its biggest shareholder, along with other shareholders would take the company private for about 351 million Canadian dollars (271 million U.S. dollars). Sirius shares galloped 34 cents, or 8.04 percent, to 4.57 Canadian dollars.

International oil prices dropped Friday on profit-taking after a three-day rise. The West Texas Intermediate for June delivery moved down 49 cents to settle at 46.21 dollars a barrel, while Brent crude for July delivery decreased 25 cents to close at 47.83 dollars a barrel.

Supply from the Organization of the Petroleum Exporting Countries (OPEC) is climbing after sanctions on Iran were lifted and an initiative with Russia and other non-members to tackle a supply glut by freezing output failed last month.

OPEC production in April hit the highest since at least 2008, pumping 32.44 million barrels per day (bpd) April, a hike of 188,000 bpd from March, it said in a monthly report.

However, the oil prices still ended the week higher after production in Nigeria fell to its lowest in two decades and wildfires slashed output from Canada's oil sands.

Canadian Prime Minister Justin Trudeau visited Fort McMurray on Friday to view first-hand the swath of destruction left by last week's wildfire, which has devastated sections of the oilsands city.

Meanwhile, as foreign buyers flocking to Canada are blamed for the heated house market, CIBC calls on Ottawa to consider "flipping tax" on foreign investors.

The Canadian dollar traded higher at 0.7731 U.S. dollar, compared with Thursday's closing rate of 0.7792 U.S. dollar.


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