TSX Ends Sharply Lower On Energy Shares Plunge -- Canadian Commentary

(RTTNews) - Canadian stocks ended sharply lower Friday, tracking declining global equity markets as crude oil plunged to a fresh five-year low and over worries about the global economy hurting sentiment even as investors digested some mixed economic data from the U.S.

The S&P/TSX Composite Index shed about 5.1 percent for the week, the worst weekly decline since September 2011.

Crude oil futures plunged below $58 a barrel after the International Energy Agency cut its global oil demand growth forecast for 2015 to 0.9 million barrels per day, down 230 kilo barrels per day from its previous forecast.

In some soft economic data, the U.S. Labor Department on Friday said U.S. producer prices fell slightly more than anticipated in November, reflecting the sharp drop in energy prices. Meanwhile, China's industrial production growth slowed in November on temporary shutdowns, while growth in retail sales accelerated, data showed Friday.

On a positive note, a Thomson Reuters and the University of Michigan report showed U.S. consumer sentiment index to have jumped to a near eight-year high in December, the highest level since January 2007.

The benchmark S&P/TSX Composite Index closed Friday at 13,731.90, down 173.22 points or 1.25 percent. The index scaled an intraday high of 13,889.07 and a low of 13,713.17.

On Thursday, the benchmark S&P/TSX Composite Index closed up 52.17 points or 0.38 percent at 13,805.12, after an intraday high of 14,083.74 and a low of 13,827.43. Crude oil ended at a fresh 5-year low on demand growth and oversupply concerns, after the International Energy Agency triggered yet another collapse as it slashed the demand growth forecast for 2015, despite the dollar weakening against some major currencies.

The Energy Index shed 1.10 percent, with U.S. crude oil futures for January delivery plunging $0.99 or 1.6 percent to close at $59.95 a barrel a barrel on the Nymex Thursday.

Shares of Talisman Energy Inc. (TLM.TO) soared 18.31 following reports that Spanish oil giant Repsol S.A. (REPYY.PK) is in talks to buy the Canadian oil and gas company in a deal valued at up to $8 billion.

Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) fell 3.12 percent, Pacific Rubiales Energy Corp. (PRE.TO) dived 7.94 percent, Suncor Energy Inc. (SU.TO) dropped 1.32 percent, and Encana Corp. (ECA.TO) shed 2.499 percent.

Cenovus Energy Inc. (CVE.TO) dropped 3.41 percent, Imperial Oil Limited (IMO.TO) slipped 0.40 percent, Crescent Point Energy Corp. (CPG.TO) dipped 2.42 percent, and Enbridge Inc. (ENB.TO) fell 1.93 percent.

Gold futures ended lower on some upbeat economic data from the U.S. with the Thomson Reuters and the University of Michigan consumer sentiment index rising more than expected in December. The losses were somewhat capped as the dollar weakened against some major currencies and global equity markets declined.

The Global Gold Index fell 1.75 percent, with gold for February delivery dropping $3.10 or 0.3 percent to settle at $1,222.50 an ounce on the New York Mercantile Exchange Friday.

In the gold space, Barrick Gold Corp. (ABX.TO) fell 2.64 percent, Agnico Eagle Mines Limited (AEM.TO) dropped 0.88 percent, Goldcorp Inc. (G.TO) fell 2.37 percent, Eldorado Gold Corp. (ELD.TO) declined 2.88 percent, and Franco-Nevada Corp. (FNV.TO) surrendered 2.28 percent.

The Capped Materials Index fell 1.93 percent, mostly on declining gold stocks, even as Potash Corp. of Saskatchewan Inc. (POT.TO) shed 2.05 percent.

The heavyweight Financial Index slid 1.36 percent, as Bank of Nova Scotia (BNS.TO) shed 0.93 percent, National Bank of Canada (NA.TO) plunged 3.75 percent, and Toronto-Dominion Bank (TD.TO) surrendered 1.12 percent.

Royal Bank of Canada (RY.TO) fell 1.38 percent, while Bank of Montreal (BMO.TO) slipped 0.15 percent. Canadian Imperial Bank of Commerce (CM.TO) shares fell 2.48 percent.

The Healthcare Index added 0.11 percent, as Valeant Pharmaceuticals International, Inc. (VRX.TO) edged up 0.29 percent and Catamaran Corp. (CCT.TO) fell 1.58 percent.

The Diversified Metals & Mining Index plummeted 2.99 percent, as Teck Resources Limited (TCK.B.TO) plunged 5.46 percent after having surrendered over 9 percent yesterday.

First Quantum Minerals Ltd. (FM.TO) fell 3.01 percent, while Lundin Mining Corp. (LUN.TO) dipped 3.21 percent. Sherritt International Corp. (S.TO) added 1.35 percent.

The Capped Industrials Index slipped 0.19 percent, as Bombardier Inc. (BBD.B.TO) shed 0.49 percent, Canadian National Railway Company (CNR.TO) dropped 0.73 percent, and Air Canada (AC.TO) dived 3.33 percent.

Magna International Inc. (MG.TO) fell 3.34 percent, while Linamar Corporation (LNR.TO) dropped 1.57 percent.

The Information Technology Index shed 1.59 percent with BlackBerry Ltd. (BB.TO) down 2.90 percent, Descartes Systems Group Inc. (DSG.TO) down 0.92 percent, and Avigilon Corp. (AVO.TO) dropping 3.90 percent.

The Capped Telecommunication Index dropped 1.36 percent, as BCE Inc. (BCE.TO) fell 1.11 percent, Rogers Communications Inc. (RCI.B.TO) shed 1.64 percent, and TELUS Corp. (T.TO) surrendered 1.22 percent.

Dominion Diamond Corp. (DDC.TO) gained 3.51 percent after reporting a third-quarter consolidated net profit of $25.5 million or $0.30 per share, compared to a net loss of $4.8 million or $0.06 per share in the same quarter last year. The Consumer Discretionary Index dipped 1.99 percent, as Amaya Inc. (AYA.TO) plunged 18.31 percent after the company said it is cooperating with a Quebec investigation regarding trading activities.

BRP Inc. (DOO.TO) shares plummeted 8.07 percent after reporting third-quarter net income of $ 37.2 million, compared to $ 48.2 million in the year ago quarter.

In economic news, data from the U.S. Labor Department showed producer prices to have declined 0.2 percent in November. Economists expected the index to decline 0.1 percent month-over-month in November.

A Thomson Reuters and the University of Michigan report showed the preliminary reading on the consumer sentiment index for December at 93.8, compared to the final November reading of 88.8. Economists expected the index to show a more modest increase of 89.5.

A report from China's National Bureau of Statistics showed industrial production to have advanced 7.2 percent in November from last year. This was the weakest growth in three months and slower than the 7.7 percent increase seen in October and 7.5 percent growth forecast by economists.

In economic news from eurozone, data from Eurostat showed eurozone industrial output to have edged up by a less than expected 0.1 percent October, after a revised 0.5 percent increase in the preceding month.

Elsewhere in Europe, the leading economic index in the UK declined for a second straight month in October, the Conference Board said Friday. The leading economic index dropped 0.3 percent in October, same as in the previous month, which was revised from 0.4 percent. In August, the index climbed 0.4 percent.