Daily Wrap-up: TSX declines on oil slump

TSX declines on oil slump... RBC boosts dividend as profits rise... LNG exports may not make environmental sense... Tim Hortons names new president...

Steve Randall
TSX declines on oil slump
The main index of the Toronto Stock Exchange closed nearly 1 per cent lower Wednesday as oil prices slumped around 3 per cent amid data confirming a build in US stockpiles. The EIA’s data backed up an earlier API report and reignited concerns over the global supply glut.

With a stronger greenback and expectation of a US interest rate rise, gold prices were down almost 1.5 per cent.

Overall the materials group on the S&P/TSX Composite was down nearly 5 per cent and energy fell 1.5 per cent; all the sectors with the exception of telecoms were lower.
Wall Street’s main indexes were all lower while Asian and European markets closed mixed.
The S&P/TSX Composite Index closed down 138.5 (0.94 per cent)
The Dow Jones closed 65.82 (0.35 per cent)
Oil is trending lower (Brent $48.97, WTI $46.74 at 4.25pm)
Gold is trending lower (1327.70 at 4.25pm)
The loonie is valued at U$0.7735
RBC boosts dividend as profits rise
Net income at Royal Bank of Canada were up 17 per cent year-over-year in its third quarter to $2,895 billion. The sale of RBC General Insurance boosted profits by $235 million after tax.

Earnings per share were $1.88 compared to $1.66 in the same period a year ago and the bank announced that its dividend would be increased 2 cents to 83 cents per share.

Total revenue increased to $10.26 billion, up from $8.83 billion in Q3 2015.
LNG exports may not make environmental sense
Canada’s aim of becoming a major exporter of liquefied natural gas may not have the environmental benefits that were hoped.

A study by CD Howe authors James Coleman and Sarah Jordaan concluded that although switching to LNG would reduce carbon emissions in China, India, Taiwan and Japan; it was likely to increase it in 9 of the 13 anticipated export markets.

That’s because those markets already have sizeable greener energy sources.
Tim Hortons names new president
There’s a new president at Tim Hortons Canada as David Clanachan makes way for former finance head Sami Siddiqui. Clanachan is staying with the company as chairman of TH parent RBI Canada.