Weak Banks Offet Rebounding Oil Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks inched lower Wednesday, as weakness in the financial sector offset rebounding oil shares led by Encana.

The S&P/TSX Composite Index lost 23.17 points, or 0.18 percent, to 12,740.27, but battled back from signficant losses earlier in the session.

Traders reacted negatively to downbeat earnings this week from some Canada's biggest banks.

Royal Bank of Canada (RY.YO) lost 2.7 percent after it reported huge loan losses, stung by the effects of collapsing oil prices in the energy sector.

Adjusted profit, which excludes some items, was $1.64 a share, a bit shy of estimates. Still, the bank raised its quarterly dividend 2.5 percent.

Energy stocks rallied along with crude oil prices.

Oil major Encana (ECA.TO) is cutting another 20% of its staff.

Its revised 2016 capital plan will range between $900 million and $1 billion, reflecting a 55 percent decrease from its full-year 2015 capital investment.

Encana shares jumped 20 percent.

April WTI oil gained 28 cents, or 0.9%, to settle at $32.15/bbl.

In news from the health care sector, Shoppers Drug Market may soon sell medical marijuana, the Globe and Mail reports.