TSX closes in the red as lower oil prices hurt energy stocks

By Nivedita Balu

(Reuters) - Canada's main stock index ended lower on Thursday, pressured by declining commodity prices that hurt energy and materials stocks.

The Toronto Stock Exchange's S&P/TSX composite index was down 86.53 points, or 0.41%, at 20,929.38.

The energy sector shed 1.4%, hurt by a decline of over $2 in crude prices as concerns eased about shipping disruptions along the Red Sea route. [O/R]

The materials sector, which includes precious and base metals miners and fertilizer companies, fell 1.4% as gold prices eased and silver fell due to an uptick in the U.S. dollar. [GOL/]

"There's a greater sensitivity to commodity prices in Canada versus the United States. The TSX is underweight in information technology, communication, healthcare and consumer discretionary," said Brandon Michael, senior investment analyst at ABC Funds.

"The global indices are continuing to lift higher... it's not the same story for the TSX."

Weighing on the energy index, Energy Fuels tumbled 7% to the bottom of TSX after the minerals company announced that the chief financial officer Tom Brock would step down.

Other gold stocks including Torex Gold, Seabridge Gold, New Gold were among top losers on the index.

Investors locked in profits from a rally ahead of year-end as Friday marks the last trading day of the year, with the TSX expected to post a yearly win.

Top gainer healthcare index added 2.7%, following a 8% jump in cannabis company Tilray Brand shares, extending gains from the previous session.

Shares of Shopify jumped 1% and were set to close the year with one of the highest gains on the exchange. The information technology ended higher and is on track to be the best-performing sector, up over 50% year-to-date.

(Reporting by Khushi Singh in Bengaluru and Nivedita Balu in Toronto; Editing by Ravi Prakash Kumar and Alistair Bell)