Canada’s resource-laden main stock index fell back on Tuesday, as oil and mining stocks were hit by a rout in commodity prices following China’s unexpected move to devalue its currency.
The Toronto Stock Exchange’s S&P/TSX composite index sank as much as 1.4 percent before paring those losses to close down 51.72 points, or 0.36 percent, at 14,414.67. Seven of the 10 main sectors lost ground.
The People’s Bank of China devalued the yuan by nearly 2 percent overnight in China’s latest attempt to bolster its economy following a string of poor economic data.
“It’s created more negativity,” said Brian Pow, an equity analyst at Acumen Capital Partners in Calgary. “We’ve seen it in the oil price getting pushed down hard.”
Prices for copper, aluminum and U.S. crude oil hit six-year lows on concerns the cheaper yuan will make importing commodities more expensive for China, which is among the world’s top consumers of resources.
Energy stocks fell 0.8 percent, with Crescent Point Energy Corp down 4.9 percent at C$18.02 and Encana Corp off 2.5 percent to C$9.50.
Pengrowth Energy Corp (USA) (NYSE:PGH) engages in the acquisition, development, exploration, and production of oil and natural gas assets in the Alberta, British Columbia, Saskatchewan, and Nova Scotia provinces in Canada. The Company shares are trading +6.61% above their 52 week low price after the last close and -78.18% below the 52 week high. Its latest closing price was down -54.75% from the average-price of 200 days while it kept its distance from the SMA50 at -40.38% and -23.80% compared with the SMA 20.
Shares of Encana Corporation (USA) (NYSE:ECA) were +10.17% up 52 week lows as of the latest close and -68.34% below the 52 week high. Its latest closing price was down -43.32% from the average-price of 200 days while it maintained a distance from the SMA 50 at -28.29% and -10.54% compared with the SMA 20. Encana Corporation, together with its subsidiaries, engages in the development, exploration, production, and marketing of natural gas, oil, and natural gas liquids in Canada and the United States.
Canadian Solar Inc. (NASDAQ:CSIQ) together with its subsidiaries, designs, develops, manufactures, and sells solar wafers, cells, and solar power products worldwide. The stock’s latest price traded at +33.14% up 52 week lows after the closing bell and was -39.52% behind its 52 week high. Its latest closing price was -14.65% below the SMA200 while the distance from the SMA 50 and SMA 20 was -13.21% and -4.26% respectively.
Magna International Inc. (USA) (NYSE:MGA) is trading +32.03% higher than the 52 week low price and -9.49% behind the 52 week high. The stock’s latest closing price was +1.12% up from the average-price of 200 days while it kept its distance from the SMA50 at -4.43% and -1.25% compared with the SMA 20. Magna International Inc. develops, manufactures, engineers, supplies, and sells automotive products.
Canadian National Railway (USA) (NYSE:CNI) together with its subsidiaries, engages in rail and related transportation business in North America. The Company so far this year has moved down -9.77% and its monthly performance stands at +6.16%. The stock was up +9.42% from its 52 week low and was -17.84% below the 52 week high. Its latest closing price was down -5.29% from the average-price of 200 days while it kept its distance from the SMA50 at +3.09% and +0.74% compared with the SMA 20.