Toronto market loses 0.9% as oil price tumbles
By Fergal Smith
(Reuters) -Canada's main stock index fell on Tuesday, extending its pullback from a six-week high, as a sharp decline in commodity prices led to a sell-off in the materials and energy sectors.
The Toronto Stock Exchange's S&P/TSX composite index ended down 168.35 points, or 0.9%, at 19,575.59. It was the second straight day of declines for the index after it posted on Friday its highest closing level since Sept. 20.
In contrast, U.S. benchmark the S&P 500 notched its longest streak of gains in two years as long-term borrowing costs eased.
"Oil is at a multi-month low, much to the surprise of those that were concerned about energy prices with the conflict in the Middle East," said Barry Schwartz, a portfolio manager at Baskin Financial Services.
"I think the market is pricing in lower growth for the worldwide economy going forward ... Energy is a commodity based on a strong economy."
U.S. crude oil futures fell to their lowest level since July, settling down 4.3% at $77.37 a barrel, as mixed Chinese economic data and rising OPEC exports eased fears about tight markets.
The energy sector fell 3.8%, while the materials sector, which includes precious and base metals miners and fertilizer companies, lost 1.9% as gold and copper prices also declined.
Heavily-weighted financials were down 0.7%, giving back some recent sharp gains.
Crescent Point Energy Corp was among the biggest decliners. Its shares fell 9.9% as the company announced a deal to acquire Hammerhead Energy, potentially creating Canada's seventh biggest energy producer.
Shares of Stella-Jones rose 7.4%, leading gains, after the wood products maker reported higher revenue and profit in the third quarter.
(Reporting by Fergal Smith in Toronto and Khushi Singh in Bengaluru; Editing by Tasim Zahid and Marguerita Choy)
