Canada Stocks Decline; Led Down By Telecoms; Potash Corp. Most Active Loser

By Staff,

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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 ( VZ ) 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: VZ

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