TSX Drifts Lower As Energy, Miners See Another Sell-off

(RTTNews) - Canadian stocks are drifting lower Friday morning, with falling commodity prices triggering some heavy selling in mining and energy sections.

Amid growing concerns about supply glut after the OPEC decided not to cut crude output, crude oil prices are falling again, hitting a 4-1/2 year low this morning.

Data showing better than expected Canadian GDP growth in September is limiting the market's losses a bit.

The benchmark S&P/TSX Composite Index is down 121.82 points or 0.82 percent at 14,800.61.

On Thursday, the index ended down 115.97 points or 0.77 percent at 14,922.44.

The Diversified Metals & Mining Index is down more than 5 percent. Capstone Mining Corporation (CS.TO) is plunging nearly 8 percent, Teck Resources (TCK.B.TO) is declining more than 5 percent, Lundin Mining Corporation (LUN.TO) is down 5.4 percent, HudBay Minerals (HBM.TO) is lower by 4.5 percent and Sherritt International Corporation (S.TO) is down 3.7 percent.

First Quantum Minerals (FM.TO)and Turquoise Hill Resources (TRQ.TO) are down more than 2.5 percent.

The Capped Materials Index is down 2.2 percent. Goldcorp Inc. (G.TO), Barrick Gold Corporation (ABX.TO), Silver Wheaton Corporation (SLW.TO) and Agnico Eagle Mines (AEM.TO) are down 2 to 3 percent.

Agnico Eagle Mines Limited has announced the completion of the previously announced plan of acquiring 100 percent of the issued and outstanding common shares of Cayden Resources Inc.

The Energy Index is down 2.6 percent. Suncor Energy (SU.TO), Canadian Natural Resources (CNQ.TO), Cenovus Energy (CVE.TO), Encana Corporation (ECA.TO), Crescent Point Energy Corp. (CPG.TO), Imperial Oil (IMO.TO) and Husky Energy (HSE.TO) are down 1.5 to 3 percent, while Canadian Oil Sands (COS.TO) is declining more than 6 percent.

Pembina Pipeline Corp. (PPL.TO) is planning to construct a new facility and expand its gas processing capacity at Musreau by 100 million cubic feet per day for an estimated cost of $105 million. The stock is down 1.4 percent.

Enbridge Inc. (ENB.TO) shares are down 0.6 percent after agreeing to purchase an 80 percent interest in a portfolio of two wind farms in the U.S. from E.ON. The agreed enterprise value for the portfolio is about US$650 million.

The Financial Index is up 0.5 percent. Among the big six banks, National Bank of Canada (NA.TO) is up marginally, while the others are up 0.4 to 0.7 percent.

Fairfax Financial Holdings (FFH.TO), Manulife Financial Corporation (MFC.TO) and Sun Life Financial Inc. (SLF.TO) are moving up 0.7 to 1 percent.

The Industrials Index is down 1.8 percent. Canadian National Railway Company (CNR.TO) and Finning International Inc. (FTT.TO) are down 2.5 percent and 2.7 percent, respectivley. Canadian Pacific Railway Limited (CP.TO) is declining over 4 percent. Meanwhile, Progressive Waste Solutions (BIN.TO) and CAE Inc. (CAE.TO) are moving up 1.6 percent and 1 percent, respectively.

The Consumer Staples Index is up 1.3 percent. Alimentation Couche-Tard Inc. (ATD.B.TO) is moving up 3.3 percent and Metro Inc. (MRU.TO) is rising 1.6 percent.

The Telecommunications Index is up over 1 percent. BCE Inc. (BCE.TO) is up 1 percent. BCE Inc. and GLENTEL Inc. (GLN.TO) have entered into an agreement whereby BCE will acquire all of the issued and outstanding shares of GLENTEL, in a deal valued at approximately $670 million. Glentel Inc. shares are up by a whopping 104 percent.

TELUS Corporation (T.TO), Rogers Communications Inc. (RCI.TO) and Manitoba Telecom Services Inc. (MBT.TO) are up 0.8 to 1.2 percent.

Methanex Corp. (MX.TO) is down 3.3 percent after announcing that its Trinidad operations have been temporarily idled due to an interruption in power supply.

In commodities, crude oil futures for January are down $4.94 or 6.70 percent at 68.75 a barrel.

Natural gas for January is down $0.161 or 3.69 percent at $4.195 per million btu.

Gold futures for February are down $17.20 or 1.44 percent at $1,180.30 an ounce.

Silver for March is down $0.886 or 5.30 percent at $15.725 an ounce. Meanwhile, copper is down $0.099 or 3.30 percent at $2.858 per pound.

On the economic front, a report from Statistics Canada showed Canadian GDP to have risen to a seasonally adjusted 0.4 percent in September, up from -0.1 percent in the preceding month.

A separate report showed that Canada's industrial product price index unexpectedly fell to -0.5 percent in October, down from -3 percent a month earlier. Sequentially, GDP rose 0.7 percent in the third quarter, while annualized GDP was up a better than expected 2.8 percent.

Meanwhile, Canadian raw materials price index dropped to -4.3 in October, after coming in at -1.8 percent in the preceding month.