Canadian shares fluctuated as lower prices of oil piled downward pressure on energy stocks, canceling out better-than-expected earnings from Linamar Corp.
The standard & Poor’s/TSX Composite Index caved in under the weight of BlackPearl Resources Inc., Crew Energy and Trinidad Drilling Ltd., all of which plunged at least 4.2%. Linamar, manufacturer of vehicle parts, added 14%. Mitel Networks Corp increased 15% after announcing it would save more money than originally estimated from its deal with Aastra Technologies Ltd.
The S&P/TSX lost 12.04 points or lower than 0.1%, to 14,644.36 as of 12:21 pm in Toronto. The Canadian stocks index is up almost 8% in 2014 and has soared for the past 10 straight months, reported Bloomberg.
“There’s a bit of a rotation out of energy today. Oil prices are rolling over on supply concerns, and Ukraine plays into it,” said Wes Mills of Toronto-based Scotia Private Client Group.
An index of energy shares slid 0.8% for the sharpest loss among 10 industry groups in the S&P/TSX. West Texas Intermediate crude declined with inventories at a seasonal record peak against the backdrop of weak demand.
Russian President Vladimir Putin said his country was testing its army’s readiness for war, pushing tensions upwards after promising to withdraw from Ukraine’s border.
As MSN reports, Canadian Natural Resources Ltd lost 1.6% while Suncor Energy Inc shed 0.5%. Royal Bank of Canada added 0.5%.
Lundin Mining Corp increased 3% to 5.60 Canadian dollars, the most in two weeks. First Quantum Minerals Ltd soared 2.1% to C$20.77.
BlackPearl Resources sank 7.5% to C$2.83. The stock had its rating trimmed from outperform to neutral, the equivalent of hold, by Macquarie Research. The firm’s first-quarter production was below estimates.
Manufacturer of surveillance equipment Avigilon Corp retreated 10% to C$21.43, extending losses to the third day. The firm announced earlier this week that its chief financial officer quit for health reasons.
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