Crumbling Energy Stocks Drive TSX Lower -- Canadian Commentary

(RTTNews) - Canadian stocks fell Wednesday, although losses were not as pronounced as one might imagine given today's collapse in oil prices.

The S&P/TSX Composite Index fell 92.42 points, or 0.6 percent, to 15,372.14.

Energy stocks plunged 3%, but financials were fractionally higher to provide a measure of support for the broader market.

WTI light sweet crude dropped $2.30, or 4.8% to $45.88 a barrel, approaching its lowest of the year. Prices accelerated lower when the Energy Information Administration said US crude inventories rose by 3.3 million barrels in the week ended June 2, compared with expectations for an decrease of 3 million barrels.

Banks shrugged off a warning that the Canadian government should do more to prevent a housing bubble.

"Higher interest rates will take some of the wind out of booming housing markets and rapidly rising house prices," the group wrote in its assessment of Canada's economic health. "Nevertheless, macro-prudential measures, which were strengthened during 2016, should be tightened further to address economic and financial risks related to the housing market."

Canadian municipalities issued $7.1 billion worth of building permits in April, down 0.2% from March, Statistics Canada said this morning.

Lower construction intentions for single-family dwellings were mainly responsible for the national decrease. The value of building permits declined in four provinces in April, led by Ontario and Alberta.

In corporate news, Dollarama (DOL.TO) beat first quarter estimates on high customer traffic. Shares rose 0.7 percent.

Japan's Sumitomo Metal will take a 27.75-percent interest in an Iamgold Corp (IMG.TO) gold mining project for $195-million. IMG shares fell 0.7 percent.