Canadian stocks came under strong late selling pressure to close
down 95 points as potash related stocks extended losses, again
dragging down the broader index. Telecom was the biggest sector
loser, reversing yesterday's gains. The negative price action
overshadowed the Federal Reserves dovish announcement that they
will continue to purchase $85 billion worth of bonds until
employment in the US substantially improves. Info Tech was the best
performing sector in a down tape, rising more than 4%.
Telecoms extended loses in the final 30 minutes closing lower by
1.3%. According to Reuters "Industry Minister James Moore, under
pressure from Canada's big phone companies to curb the ability of
Verizon Communications Inc (
) to set up a wireless operation in Canada, pledged on Wednesday to
stay the course in pursuing competition in the industry".
Canadian Natural Resources rose 0.54% on the back of rising oil
prices despite cutting its Primrose production target. Oil futures
added 1.9% today, to close at $105.03 a barrel, taking their
monthly gains to 8.8%. Pushing oil futures higher today was mostly
positive economic data, which boosted demand prospects for the
fuel. Investors shrugged off the unexpected increase in U.S. crude
supplies. Today, the Energy Information Administration reported an
increase of 400,000 barrels in crude stockpiles for the week ended
July 26. Analysts polled by Platts forecast a 3 million-barrel
decline. Late Tuesday, The American Petroleum Institute reported a
fall of 740,000 barrels.
Potash Corp. of Saskatchewan Inc. (POT.TO) was the most active
stock moving lower by 8.76% with more than 13.7 million shares
changing hands. The company announced today that the Toronto Stock
Exchange has approved its previously announced share repurchase
program to purchase for cancellation up to 43,345,992 common
shares, representing 5% of its outstanding common shares.