Energy stocks put pressure on the Toronto stock market Thursday as the OPEC cartel considered what to do about plunging oil prices.
The S&P/TSX composite index plummeted 115.97 points to close Thursday at 14,922.14
The Canadian dollar swooned 0.67 cents to 88.23 cents U.S.
OPEC oil ministers are meeting in Vienna to consider a cut to production to put a floor under prices that have fallen about 30% since mid-summer, when prices were elevated by geopolitical worries. Prices have steadily fallen since then because of a strengthening greenback, lower demand prospects and, particularly, a glut of oil.
However, analysts are assigning a low probability to such a production cut.
Lower oil prices are starting to bite into Canadian provincial finances. The Alberta government now expects a barrel of oil to trade at an average of $75.00 U.S. a barrel for the rest of the fiscal year ending next March.
Revenue from Alberta's energy sector generally accounts for about 25% of the province's total revenue.
In the energy sector, Imperial Oil hurtled earthward $3.98, or 7.2%, to $51.00, while Suncor dipped $2.21, or 5.7%, to $36.86, and Canadian Natural Resources fell $3.09, or 7.5%, to $38.29.
Gold prices also headed lower as Goldcorp dropped a penny to $23.48, and Barrick Gold shed 23 cents, or 1.6%, to $14.30.
Health-care shares, however, provided something of a ray of hope as Valeant Pharmaceuticals jumped $4.49, or 2.8%, to $167.16.
Tech stocks also clicked higher, as Open Text hiked $1.28, or 1.9%, to $67.26.
ON BAYSTREET
The TSX Venture Exchange fell 15.66 points to close at 755.40.
Even so, with all this negative news, nine of the 14 Toronto subgroups were higher on the day, with health-care stocks soaring 1.7%, information technology issues better by 1%, and consumer discretionaries improving 0.8%.
The five laggards were led by (of course!) energy stocks, taking a pounding of 7.2%, while metals and mining were weaker by 1.8%, and materials, worse off by 1.4%.
ON WALLSTREET
U.S. markets were shuttered for Thanksgiving. They will reopen for half a day Friday.
