(Updates market moves to close, adds analyst comment, details
on Kinder Morgan)
* TSX down 49.56 points, or 0.32 percent, to 15,372.35
* Half of the TSX's 10 main groups fall
* Energy stocks fall 1.6 percent, financials off 0.3 percent
By Solarina Ho
TORONTO, May 30 Canada's main stock index fell
on Tuesday amid broad declines among oil and gas companies, hurt
in part by a slide in crude oil prices and political tension in
Western Canada over a Kinder Morgan pipeline project.
The Toronto Stock Exchange's S&P/TSX composite index
fell 49.56 points, or 0.32 percent, to 15,372.35. Five
of the index's 10 main groups ceded ground.
The index's most influential movers included Canadian
natural Resources, which retreated 1.7 percent to
C$39.13, and Encana Corp which slumped 5.2 percent to
C$13.53. The energy group, which makes up about a fifth of the
index, fell 1.6 percent.
Shares in Kinder Morgan Canada Ltd closed at
C$16.24 after debuting at C$16.06 on the TSX after raising
C$1.75 billion ($1.3 billion) in an initial public offering
(IP0) at C$17.00 each last week.
"A lot of the energy and utilities are down. I think a lot
of that too is Kinder Morgan Canada came out today," said Bryden
Teich, portfolio manager with Avenue investment Management.
Kinder Morgan plans to more than double the capacity of its
Trans Mountain pipeline from Alberta to the Pacific province of
British Columbia, where the two political parties opposing the
project struck a deal to take power for four years.
"With the NDP and the Green Party lining up together ... I
think there might be just a little bit of concern over that and
whether or not this Kinder Morgan (project) can get done," said
U.S. crude oil prices were down 0.6 percent to $49.51
a barrel on concerns that production cuts by the world's big
exporters may not be enough to mitigate a global glut in crude.
Financials slipped 0.3 percent as modest dips in most bank
shares offset Bank of Nova Scotia's 0.6 percent rise to
C$76.60. Scotiabank reported second-quarter results that beat
analyst expectations, helped in part by its international
Teich said bank results this quarter have generally been
strong, giving the market more confidence and alleviating
contagion concerns relating to Home Capital Group Inc.
Canadian National Railway Co, which reached a
tentative deal on Monday with the Teamsters union that
represented 3,000 conductors, averting a strike, rose 1.1
percent rise to C$104.52. The overall industrials sector climbed
Declining issues outnumbered advancing ones on the TSX by
172 to 74, for a 2.32-to-1 ratio on the downside.
The index posted six new 52-week highs and one new 52-week
(Reporting by Solarina Ho; Editing by James Dalgleish)