TSX threatens to snap nine-day rally as oil slide hits energy shares

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto

Canada’s main stock index dipped marginally on Thursday, endangering a nine-day winning streak after a drop in oil prices hurt the energy sector.

* At 9:35 a.m. ET (1435 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 28.16 points, or 0.19 percent, at 15,083.1.

* The energy sector dropped 0.6 percent, the most among the 11 main sectors.

* U.S. crude prices were down 1.6 percent, while Brent crude lost 1.2 percent on higher production and concerns over weakening demand in light of the trade dispute between the United States and China. [O/R]

* The Canadian province of Alberta’s OPEC-style decision to force production cuts is benefiting oil companies with higher prices, but is also pushing capital elsewhere and threatens to undermine booming crude-by-rail shipments, only adding to the day’s downbeat tone.

* The financials sector slipped 0.1 percent. A Reuters poll showed signs of withering conviction in further interest rate hikes from the Bank of Canada.

* The poll said Canada’s economy is clawing its way through a soft patch, which will delay the next interest rate rise until at least April.

* The materials sector, which includes precious and base metals miners, lost 0.4 percent as prices of aluminum and gold dropped.

* On the TSX, 107 issues were higher, while 111 issues declined for a 1.04-to-1 ratio to the downside, with 14.25 million shares traded.

* Husky Energy jumped 13.5 percent, the most on the TSX, as the oil producer said it will not extend its hostile bid for MEG Energy after failing to get sufficient support from the rival’s board and shareholders.

* MEG Energy shares plunged 37.6 percent, the most on the TSX.

* The most heavily traded shares by volume were those of Aurora Cannabis, Trevali Mining, and MEG Energy.

* The TSX posted one new 52-week high and no new low.

* Across all Canadian issues, there were six new 52-week highs and one new low, with total volume of 20.57 million shares.