Roundup: Canadian stock market drops amid central bank's concern about oil

Toronto Stock Exchange, Canada's main stock market declined Monday as the energy sector tumbled, after Canada's central bank expressed concern about the falling oil prices.

Toronto Stock Exchange's benchmark S&P/TSX Composite Index was down 119.91 points, or 0.83 percent, to 14,265.01 points. Five of the eight major sectors were in the red.

A Bank of Canada survey showed Monday that the outlook for businesses that are linked directly or indirectly to the energy sector has deteriorated due to the oil plunge. "Oil price developments have led many firms to be more uncertain about the outlook for their businesses, which have had an impact on their upcoming investment projects."

The central bank's quarterly business outlook survey also showed that companies anticipating a positive impact from the U.S. economic recovery are more optimistic than others.

Energy, the biggest loser in TSX, shed 4.61 percent to its lowest since June, when Canadian Natural Resources Ltd dropped 4. 10 percent to 31.81 Canadian dollars (about 26.58 U.S. dollars) after the oil giant cut its 2015 capital expenditure and production forecast as global oil prices continue to drop.

Oil prices were hammered down as investment banks including Goldman Sachs Group slashed their price forecasts.

Light, sweet crude for February delivery lost 2.29 U.S. dollars to settle at 46.07 dollars a barrel on the New York Mercantile Exchange, while Brent crude for February delivery decreased 2.68 dollars to close at 47.43 dollars a barrel.

Shares of the metals and mining sector gave back 3.87 percent, as Teck Resources Ltd. plunged 3.59 percent to 15.39 Canadian dollars and First Quantum Minerals Ltd. fell 6.45 percent to 15.82 Canadian dollars.

Financials, the index's most heavily weighted sector, slipped 0. 94 percent, when Royal Bank of Canada declined 0.86 percent to 76. 81 Canadian dollars, and Toronto-Dominion Bank slumped 0.95 percent to 52.09 Canadian dollars.

The gold group, however, was gaining some momentum on Monday over a rally in gold price. Goldcorp Inc. jumped 4.38 percent to 25.72 Canadian dollars.

The healthcare sector added 0.22 percent as Tekmira Pharmaceuticals Corp. soared 56.03 percent to 29.38 Canadian dollars, after the company agreed to merge with the U.S. biopharmaceutical company OnCore Biopharma to create leading Global Hepatitis B Virus Company.

On the currency front, the Canadian dollar closed lower Monday to 0.8356 U.S. dollar from 0.8427 U.S. dollar last Friday, after the Canadian dollar slipped to the lowest level since April 2009, when Bank of Canada's survey weighed on the trading sentiment. Endite