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TSX drops as energy sector slumps on rising U.S. crude inventory

Published 2020-06-10, 08:09 a/m
© Reuters. The facade of the original Toronto Stock Exchange building is seen in Toronto

(Reuters) - Canada's main stock index reversed course to move lower on Wednesday, dragged down by energy stocks as oil prices fell on reports of an increase in U.S. crude stockpile, while investors remained cautious ahead of the U.S. Federal Reserve's meeting.

At 9:46 a.m. ET (1346 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 66.13 points, or 0.42%, at 15,767.61.

The energy sector dropped 2.9% as U.S. crude prices were down 1.9% a barrel, while Brent crude lost 1.7%. [O/R]

The financials sector slipped 0.9%. The industrials sector fell 0.6%.

The materials sector, which includes precious and base metals miners and fertilizer companies, gained 0.5% as gold futures rose 0.6% to $1,724.8 an ounce. [GOL/]

On the TSX, 77 issues were higher, while 151 issues declined for a 1.96-to-1 ratio to the downside, with 31.97 million shares traded.

The largest percentage gainer on the TSX was copper miner First Quantum Minerals Ltd (TO:FM), which jumped 4.4%, followed by Dollarama Inc (TO:DOL), which rose 4.3% after the discount retailer reported it first-quarter results.

Oilfield services and equipment provider Shawcor Ltd (TO:SCL) fell 11.9%, the most on the TSX. The second-biggest decliner was Baytex Energy Co (TO:BTE), down 9.4%.

The most heavily traded shares by volume were Bombardier Inc (TO:BBDb), Calfrac Well Services Ltd (TO:CFW) and Air Canada

The TSX posted no new 52-week highs and no new lows.

© Reuters. The facade of the original Toronto Stock Exchange building is seen in Toronto

Across all Canadian issues, there were eight new 52-week highs and two new lows, with total volume of 56.53 million shares.

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