TSX Ends Lower As Energy Stocks Slide

(RTTNews) - Heavy selling in the energy space pushed the Canadian market down into the negative territory after a positive start on Monday. The market did recover in afternoon trades, but lacked the strength to get back into positive territory.

Growing optimism about U.S.-China trade deal set up a positive start for the market, but weakness in the energy space on the back of a fresh setback the industry is facing due to regulatory rendered the mood bearish.

Investors stayed a bit wary of building up positions ahead of the central bank's rate decision, due on Wednesday. The Bank of Canada is expected to hold its benchmark at 1.75%. The bank's assessment on the kind of growth to expect this year is keenly awaited.

The benchmark S&P/TSX Composite Index ended down 30.12 points, or 0.19%, at 16,038.13, after plunging to a low of 15,954.96. The index advanced to a high of 16,093.49 in early trades.

On Friday, the index ended down 75.29 points, or 0.47%, at 15,999.01.

The Capped Energy Index shed 1.73%. Enbridge Inc. (ENB.TO) plunged 5.8%. Enbridge said it is delaying the startup of its Line 3 replacement crude oil pipeline through northern Minnesota by a year. The company said on Friday that it now expects the new pipeline to go into service in the second half of 2020.

The company said that construction is being pushed back because the Minnesota permitting process won't be complete until November, and the federal permits won't be received until as long as 60 days after that.

Canadian Natural Resources (CNQ.TO) declined 4.5% and Cenovus Energy (CVE.TO) closed lower by 5.7%. Tourmaline Oil Corp. (TOU.TO) ended 1.2% down and Husky Energy (HSE.TO) declined 1.3% and ARC Resources (ARX.TO) closed 1.6% down.

MEG Energy (MEG.TO) ended 6.1% down, Baytex Energy Corp. (BTE.TO) and Crescent Point Energy (CPG.TO) both ended lower by about 2.4%.

Imperial Oil (IMO.TO) gained 2.4% and Vermilion Energy Inc. (VET.TO) advanced 3.4%.

In the materials space, Kirkland Lake Gold (KL.TO) declined 3.2%. Nutrien (NTR.TO) added 1% and Goldcorp Inc. (G.TO) gained up 3.5%.

Barrick Gold Corporation (ABX.TO) gained 1.65%. The board of directors of Newmont Mining Corp. has unanimously rejected a hostile takeover offer from Barrick Gold Corp. (ABX.TO) and countered with a proposal of its own.

The board has announced that the unsolicited, all-stock proposal is not in the best interests of Newmont's shareholders.

Among bank stocks, Canadian Imperial Bank of Commerce (CM.TO) gained about 0.7% and National Bank of Canada (NA.TO) added about 0.3%. Other stocks in the banking space ended little changed.

Healthcare stocks were mostly sluggish. Green Organic Dutchman Holdings (TGOD.TO) tumbeld 5.2%, Hexo Corp. (HEXO.TO) declined 1.6%, Cronos Group (CRON.TO) ended 1.3% down and Aurora Cannabis (ACB.TO) ended 1.2% down. Aphria (APHA.TO) gained 2.75%.

In commodities, West Texas Intermediate Crude oil futures for April ended up $0.79, or 1.4%, at $56.59 a barrel.

Gold futures for April ended down $11.70, or 0.9%, at $1,287.50 an ounce, falling to a six-week low.

Silver futures for May ended down $0.151, at $15.105 an ounce, while Copper futures for May settled at $2.9090 per pound, down $0.0230 from previous close.