Canada's main stock index saw renewed selling pressure on Friday following a two-day respite, recording its weakest close in more than two years, including deep losses for financial and energy stocks as crude oil prices hit fresh lows. The selling has been "self perpetuating," according to Barry Schwartz, vice president and portfolio manager at Baskin Financial Services, adding that "we have concerns about oil and high yield"
Oil prices extended their freefall, flirting with 11-year lows, after the International Energy Agency (IEA) warned that global oversupply of crude could worsen next year. US crude prices settled at $35.62 a barrel, down 3.1 percent, while Brent crude lost 5.1 percent to $37.71. Energy stocks lost 3.3 percent, with Enbridge Inc down 4.5 percent at C$41.52 and Canadian Natural Resources down 3.2 percent at C$28.99. The heavily weighted financial sector fell 1.7 percent, with Royal Bank of Canada falling 1.6 percent to C$72.99 and Manulife Financial Corp down 2.6 percent at C$20.47.
The Toronto Stock Exchange's S&P/TSX composite index fell 226.64 points, or 1.74 percent, to 12,789.95, with all 10 of the index's main groups in negative territory. The index fell 4.3 percent over the week, moving back in sight of the intra-day low seen on August 24 at 12,705.17. Hudson's Bay Co slumped 12.6 percent to C$17.40 after cutting its sales forecast for this year and next in an earnings report late on Thursday. On the positive side, the maker of Ski-Doo snowmobiles and Sea-Doo watercraft, BRP Inc, advanced 9.1 percent to C$22.01 after reporting soaring profit helped by favorable exchange rates. Gold stocks also rallied, including a 2.0 percent gain for Goldcorp Inc to C$16.51, helped by a 0.3 percent rise in the price of spot gold to $1,074.72 an ounce.
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