TSX dragged lower by energy stocks, Cenovus shares shed 14% after major deal – Ontario News

TSX dragged lower by energy stocks, Cenovus shares shed 14% after major deal – Ontario News


TORONTO — Canada’s main stock index fell after a blockbuster $17.7-billion deal by one of Alberta’s biggest oilsands players, Cenovus Energy.

The Toronto Stock Exchange’s S&P/TSX composite index dropped 78.87 points to 15,578.76, with energy and gold sectors leading with the biggest declines.

Cenovus Energy (TSX:CVE) announced late Wednesday that it will buy most of the Canadian assets of Houston-based ConocoPhillips. The acquisition led to investors selling off shares of Cenovus, which saw its stock drop nearly 14 per cent, or $2.40, to end at $15.05 on the TSX.

The weakness in the oil sector came even though the May crude contract was up 84 cents at US$50.35 a barrel, climbing for a third day in a row. The Canadian dollar was unchanged at 75 cents US.

In New York, the Dow Jones industrial average gained 69.17 points to 20,728.49 and the S&P 500 index added 6.93 points to 2,368.06. The Nasdaq composite index was up 16.79 points to 5,914.34 to a record high.

In commodities, May natural gas contracts were down four cents at US$3.19 per mmBTU, the June gold contract lost $8.80 at US$1,248 an ounce and May copper contracts dipped a penny at US$2.67 a pound.

The Canadian Press



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