The slower pace of the American economic recovery continued to discourage buyers on the Toronto stock market Wednesday.
The S&P/TSX Composite Index ended Wednesday off by 99.13 points to 13,183.79
The Canadian dollar slid 0.56 cents to 102.06 cents U.S.
The energy sector was prominent as oil prices shook off early losses as a meeting of the Organization of Petroleum Exporting Countries broke up with an announcement that current production levels will be maintained.
There had been wide speculation that the cartel would hike production in order to lower the high prices that are blamed for hobbling the economic rebound.
One OPEC delegate to the meeting in Vienna said that Iran, Venezuela and Algeria refused to consider an increase, which had been backed by Saudi Arabia.
Suncor Energy gained 19 cents to $39.04 and Canadian Natural Resources was ahead 50 cents at $40.27.
Demand concerns pushed metal prices lower with the July copper contract on the Nymex down six cents to $4.09 U.S. a pound. The base metals sector was down with Quadra FNX Mining down 42 cents to $13.55 while Teck Resources declined 59 cents to $46.66.
Major Drilling Group International Inc. shares fell 86 cents to $12.89 after it reported a near tripling of its latest quarterly profit to $9.4 million, helped by rising global demand for the company’s mine drilling services. Revenue for what was the company’s fourth quarter totaled $137.3 million, up from $97.4 million.
Gold stocks also declined as Barrick Gold Corp. faded 81 cents to $43.43 and Goldcorp Inc. declined 75 cents to $46.07.
In other corporate news, the Ontario Securities Commission said Wednesday that it is investigating matters related to Sino-Forest Corp. The company’s stock has been hammered over the last week since Muddy Waters Research leveled fraud accusations at the Chinese timberland company.
Its stock was ahead 93 cents at $4.94 after trading at $19.27 last Tuesday.
Bombardier Transportation says it has been awarded a $258-million supply contract as part of a broader $1.04-billion agreement between the Queensland government in Australia and the GoldLinQ consortium, which are working together on a light rail transit system. Bombardier shares were down six cents at $6.89.
Westport Innovations Inc. is stepping up its presence in the European market with an agreement to buy fuel system provider Emer S.p.A., based in Italy, for about $117.2 million U.S., including debt. Westport shares declined $3.48, or 15.2%, to $19.36.
Nordion Inc. handed in a $7.5-million U.S. loss for the latest quarter, 92% lower than a year earlier as the company’s medical isotopes business continued to recover. Revenue at the Ottawa-based company, formerly a subsidiary of MDS Inc., was $68.2 million, up 32% from a year ago. Its shares were down 15 cents at $10.01.
Transcontinental shares jumped 38 cents to $14.47 after the printing giant beat expectations as its second-quarter adjusted profit increased 18% to $40.1 million. New printing contracts boosted revenues to $514.7 million.
ON BAYSTREET
The TSX Venture Exchange plummeted 52.36 points to 1,951.66 while the Nasdaq Canada index eased 17.95 points to 595.62
In Toronto, all but one of the 14 subgroups ended the day in the red. Gold sank 1.9%, materials and the metals and mining gave back 1.8% each
Utilities proved the lone positive group, edging up 0.1%.
ON WALLSTREET
In New York, equities fell in choppy trading Wednesday as economic concerns continue to weigh on investors, even as higher oil prices lifted shares of energy producers.
The Dow Jones Industrial Average dipped 21.87 points to 12,048.90
The S&P 500 slipped 5.38 points to 1,279.56. The Nasdaq Composite Index gave back 26.18 points, to 2,675.38.
Verizon was the best performer on the Dow. Shares were up 1.5% after analysts at Oppenheimer upgraded the stock.
Oil prices jumped nearly 2% to trade above $100 U.S. a barrel after OPEC failed to reach an agreement on crude production levels.
The spike in crude prices lifted shares of energy producers Cabot Oil and Gas, Apache Corp. and Occidental Petroleum, among others.
Exxon Mobil rose 1.2%, after the company announced three new oil and gas discoveries in the Gulf of Mexico that could produce 700 million barrels of product.
Meanwhile, shares of Visa fell more than 5% and MasterCard slid over 6% after the Senate failed to pass a measure that would have delayed limits on fees that retailers pay when customers use debit cards.
Hovnanian reported disappointing earnings results after the market close Tuesday, sending shares of the homebuilder about 5% lower Wednesday morning.
LDK Solar shares fell more than 3% midday, after the company issued a cautious outlook.
Shares of telecommunications company JDS Uniphase were down sharply. Retail clothing companies Abercrombie & Fitch and Urban Outfitters were also under pressure.
Retailer Men's Wearhouse Inc. will report quarterly earning results after the market close.
Economically speaking, the Fed released the latest edition of its Beige Book, which describes economic conditions across the central bank's 12 districts.
The report showed that economic activity continued to expand at a moderate pace in most districts.
But growth slowed in at least four districts, while the Dallas Fed reported acceleration in activity, according to the Beige Book.
The price on the benchmark 10-year U.S. Treasury strengthened, with yields dipping to 2.96% from 3.01% late Tuesday. Treasury prices and yields move in opposite directions.
Oil prices jumped $2.10 to trade at $100.99 U.S. a barrel.
Gold futures for August delivery fell $6.40 to $1,537.60 U.S. an ounce.
