Canadian Stocks Fall as Energy Companies Follow Oil Still Lower

  • Canadian Oil Sands shares surge after agreeing to Suncor deal
  • China stocks gained earlier today, while Europe is down

Canadian stocks fell, as declining oil prices dragged down the country’s energy companies.

The Standard & Poor’s/TSX Composite Index dropped 1.1 percent to 11,942.17 as U.S. benchmark oil fell to $28.94 in electronic trading as Iran began efforts to boost production after international sanctions were lifted, heralding more supply for a global economy already awash in oil.

Kelt Exploration Ltd. and Penn West Petroleum Ltd. led decliners among energy producers, both falling more than 6.5 percent. Canadian Oil Sands surged 11 percent to C$8.27 after agreeing to a sweetened takeover offer from Suncor Energy Inc, which clinched the deal after it raised its all-stock offer by 12 percent to C$4.2 billion. Suncor fell 4.6 percent to C$29.77.

The session followed one of the worst weeks for Canadian stocks in history, as commodity prices tumbled amid speculation China’s economic growth will slow, crimping global demand.

Monday’s volume on the S&P/TSX was 61 percent lower than average as U.S. markets were closed for the Martin Luther King Jr. holiday. European stocks fell for a third day while the Shanghai Composite Index gained 0.4 percent, led by small cap stocks.

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