Canadian stocks gave back their early gains in afternoon dealing for a second session in a row on Monday as oil prices fell from their record highs, dragging down energy shares. Crude dropped as Fed officials signalled that inflation was a key concern of US policymakers and amid word that Saudi Arabia will call for a summit to discuss skyrocketing energy prices.
The S&P/TSX Composite Index slipped 3.61 points to 14,969.55, staying within hailing distance of last week's record closing high.
In the first significant move to check the menace of the oil price surge, Saudi Arabia will convene a meeting of oil producing countries and consumers to discuss ways of dealing with soaring energy prices and work to prevent unjustifiable increases.
A meeting of the Saudi Arabian cabinet held in Jiddah has decided to work with OPEC to "guarantee the availability of oil supplies now and in the future," according to Information and Culture Minister Iyad Madani.
Light, sweet crude for July delivery fell $4.19 to settle at $134.35 a barrel on the New York Mercantile Exchange. Energy stocks lost some of last week's solid gains.
The price of gold edged slightly lower on Monday in U.S. trading as crude oil cooled off, reducing the precious metal's hedge appeal. Gold for August delivery moved to $898.20 an ounce, down 80 cents on the session.
On the corporate front, Allen-Vanguard Corp. (VRS.TO) announced a new order for roadside-bomb jamming equipment worth US$35 million, supplying spares to the armament division of General Dynamics. Allen-Vanguard shares added 5 percent.
Internet broadcaster JumpTV Inc. (JTV.TO) announced that it is merging with NeuLion Inc., a closely held provider of web sports services. JumpTV stock rose 3.8 percent.
Fertilizer maker Potash of Saskatchewan (POT.TO) leaped 2.7 percent to a record high Monday after Goldman Sachs said prices for potash and phosphate should continue to rise. Agrium (AGU.TO) stock rose 2.8 percent.
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