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CANADA STOCKS-Cameco plunge leads TSX lower, energy also weighs
January 18, 2017 / 10:19 PM / 10 months ago

CANADA STOCKS-Cameco plunge leads TSX lower, energy also weighs

(Adds asset manager comment, details, updates prices to close)

* TSX ends down 43.51 points, or 0.28 percent, at 15,397.85

* Half of the TSX’s 10 main groups move lower

* Five decliners for every two advancing stocks

By Alastair Sharp

TORONTO, Jan 18 (Reuters) - Canada’s main stock index fell on Wednesday as energy stocks weighed with a fall in oil prices and as uranium producer Cameco Corp plunged on a negative outlook.

Cameco fell 16.9 percent to C$14.39 after the company said it expected its 2016 adjusted profit to be significantly lower than analysts’ estimates and also said it would cut 120 jobs at three of its uranium mines in 2017.

“The drop today certainly looks like an over-exaggeration to their announcement,” said Michael Sprung, president at Sprung Investment Management Inc.

“There’s more longer-term uncertainties out there that are worrying investors,” he added, referring to political events south of the border. “For the time being we’re going to be in a volatile market.”

An interest rate cut remains on the table if the risks facing the country are realized, the Bank of Canada said, warning there would be “material consequences” if U.S. President-elect Donald Trump enacts protectionist policies.

The Toronto Stock Exchange’s S&P/TSX composite index ended down 43.51 points, or 0.28 percent, at 15,397.85.

Canada’s biggest oil and gas producers weighed as oil prices fell to their lowest in a week on a strong U.S. dollar and expectations that U.S. producers would boost output even as OPEC’s output fell from a record high.

Canadian Natural Resources Ltd fell 1.3 percent to C$40.60 and Suncor Energy Inc lost 0.7 percent to C$42.43. The energy group retreated 1.4 percent overall.

“One thing that I think a lot of people have lost sight of is that the energy companies have been concentrating so much on their cost structure, they are much more efficient than they were,” Sprung said.

The materials sector, which includes precious and base metals miners and fertilizer companies, fell 0.5 percent.

Half of the index’s 10 main groups were in negative territory, with five decliners for every two gainers. (Editing by Nick Zieminski and Phil Berlowitz)

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