TSX slips as energy stocks weigh, Kinross slides – Reuters

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Dec 9 (Reuters) – Canada’s main stock index slipped on Thursday, after energy stocks fell tracking oil prices, and as miners were pressured by a 9% slide in Kinross Gold after its $1.42 billion buyout bid for Great Bear.

At 09:41 a.m. ET (1441 GMT), the Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) was down 75.81 points, or 0.36%, at 21,001.54, extending losses for a second straight session.

Miner Kinross Gold Corp (K.TO) fell 9% and to the bottom of the TSX index, after the company said it would buy gold explorer Great Bear Resources Ltd (GBR.V) for about C$1.8 billion ($1.42 billion), eyeing its Dixie project, a potentially long-life mine complex.

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Great Bear’s shares jumped 24.3%.

The energy sector (.SPTTEN) dropped 1.7% as oil prices fell on worries that measures by some governments to slow the spread of the Omicron coronavirus variant could hit demand.

A ratings downgrade on two Chinese property developers also stoked fears over the economic health of the world’s biggest oil importer.

The materials sector (.GSPTTMT), which includes precious and base metals miners and fertilizer companies, lost 1.7% as gold futures fell 0.2 ahead of U.S. inflation data due Friday that could influence the Federal Reserve’s stance on interest rate hikes.

“We’re heading into core (U.S) CPI data tomorrow, which is probably going to be a very large number. But if we rally off of it, and the expectation is that inflation starts to cool later into 2022, then the TSX can continue to go much higher,” said Barry Schwartz, portfolio manager at Baskin Financial Services.

HIGHLIGHTS

Payments technology company firmed as much as 13% on affirming its full-year outlook. Shares of the company had plunged 40% on Wednesday when Spruce Point Capital Management issued “strong sell” rating.

On the TSX, 66 issues were higher, while 161 issues declined for a 2.44-to-1 ratio to the downside, with 14.10 million shares traded.

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

Across all Canadian issues there were 6 new 52-week highs and five new lows, with total volume of 24.91 million shares.

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Reporting by Susan Mathew and Anisha Sircar in Bengaluru; Editing by Amy Caren Daniel

Our Standards: The Thomson Reuters Trust Principles.