TSX Plunges On Energy Weakness -- Canadian Commentary

(RTTNews) - Canadian stocks plunged along with crude oil prices Wednesday, giving back most of their gains from the previous two sessions.

The Bank of Canada left its key overnight lending rate at 0.50 per cent on Wednesday, warning of weakness in the energy and mining sectors due in part to a robust U.S. dollar.

Across the border, Fed Chair Janet Yellen acknowledged that conditions for a rate hike are on the verge of being met.

"I currently judge that U.S. economic growth is likely to be sufficient over the next year or two to result in further improvement in the labor market," Yellen said.

The S&P/TSX Composite Index dropped 172.24 points to 13,463.82.

Crude oil futures settled under the $40-a-barrel mark for first time since late August, dragging energy stocks down 3.45 percent.

Gauges of all sectors were in the red as markets grew nervous about the global economy.

The heavyweight Financial Index dropped 0.3 percent.

Royal Bank of Canada (RY.TO) was flat after it reported that its fourth-quarter net income to shareholders increased to C$2.57 billion from C$2.32 billion.

National Bank of Canada (NA.TO) was lower by 0.45 percent. The company said its fourth-quarter profit rose five per cent to C$347-million. The lender also raised its dividend.

Sun Life Financial (SLF.TO) lost 0.7 percent. The company has agreed to increase its ownership in Birla Sun Life Insurance Company Limited from 26% to 49%.

Gildan Activewear Inc. (GIL.TO) said that its President and Chief Executive Officer Glenn Chamandy has transferred 3 million Gildan common shares to a family foundation established for philanthropic purposes. The stock eased 0.3 percent.