Roger Biduk - Bay Street Drops on Oil

Roger Biduk writes:

A wave of pentup selling on the Toronto stock market sent the main index down almost 300 points Thursday as energy stocks sold off and oil headed lower.
Toronto's S&P/TSX composite index closed down 298.76 points to 8,425.35 on heavier than usual volume as the exchange resumed business after being halted Wednesday by a technical problem.
The TSX Venture Exchange was off 23.01 points to 700.45.

Shares in TMX Group (TSX:X), operator of the TSX and TSX Venture Exchange, declined 39 cents to $24.21. The company blamed its day-long halt on "technical issues with data feeds."

The CDN$ was down 0.68 cent to 82.88 cents U.S. Negative economic data kept coming, while Federal Finance Minister Jim Flaherty appointed an 11-member economic advisory council which includes former B.C. finance minister Carole Taylor and businessmen James Irving and Jim Pattison.

The energy sector led TSX losses, falling 7.6 per cent as the January crude contract in New York, which expires Friday, slid $3.84 to US$36.22 a barrel as pessimism about demand outweighed OPEC's decision to cut daily output by 2.2 million barrels. The February contract declined $2.94 to US$41.67.
EnCana Corp. (TSX:ECA), closed down $2.58 to $54.50. Suncor Inc. (TSX:SU) shed $1.91 to $24.80.

Statistics Canada reported its composite leading index fell 0.7 per cent in November. It was the third straight retreat, and the largest since January 1991, for the forward-looking index. Statistics Canada also tallied a sharp 0.9 per cent decline in October retail sales, pulled lower by price reductions.

The TSX financial sector moved down 2.2 per cent as National Bank (TSX:NA) added to its string of losses, down $2.14 to $25.62 while Royal Bank (TSX:RY) surrendered 41 cents to $34.25.

The base metals sector tumbled seven per cent as Teck Cominco Ltd. (TSX:TCK.B) retreated 67 cents to $5.38 and Sherritt International (TSX:S) dropped 38 cents to $11.76.

The gold sector dropped eight per cent as the February bullion contract on the Nymex lost $7.90 to US$860.60 an ounce. Goldcorp Inc. (TSX:G) faded $4.86 to $34.49.

The carmakers' woes pulled down auto parts suppliers. Magna International (TSX:MG.A) was down 26 cents to $35.44 while Linamar (TSX:LNR) dropped 49 cents to $3.66.
Telecom equipment maker Nortel Networks (TSX:NT) was a major loser on the TSX, losing eight cents or 11.8 per cent to 30 cents on continuing worries about the firm's survival.

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