Regional firms feel sting of market plummet

By Medicine Hat News on March 10, 2020.

Major companies with operations in Medicine Hat weren’t spared the carnage on Monday as stock markets fell sharply with fears of global economic slowdown compounded by a collapse in world oil prices.

The Toronto Stock Exchange composite average lost 10 per cent, while the Dow Jones Industrial average in New York fell 2,000 points.

Industrial, transportation and energy stocks all slid, hurting the value of major employers in southeast Alberta, including:

– Methanex, down 23 per cent on Monday to sit at $25.20, compared to 52-week high of $81;

– CF Industries, down 15 per cent on Monday to sit at $31.17, compared to a 52-week high of $55.15;

– Tokai Carbon, which owns the Cancarb plant in Medicine Hat, saw shares in Tokyo slip 5 per cent on March 9 before markets opened in North America.

– Canadian Pacific Railway sat at high of $275.13 in January before the stock was dragged down by blockade efforts that targeted competitor Canadian National Railway. CP stock sat at $202 after losing 17 per cent on Monday alone.

Even non-energy, non-trade exposed firms saw declines as broad economic challenges spooked investors.

Edmonton-based utility Capital Power, which commissioned a wind facility in Whitla in late 2019 and plans to expand it in 2022, saw shares drop 10 per cent on Monday to sit at $32.81.

Hut 8 Cryptocurrency closed just above $1, having fallen 13 per cent in trading on Monday, and Aurora Cannabis, $1.29, was down 17 per cent on Monday. That follows a hard decline this winter as cannabis stocks fell across the board.

Among U.S. industrials, Goodyear stock was 12 per cent lower in trading in New York on Monday. It wound up at US$7.70, about $10 lower than a recent high last fall.

Oilsands giant Suncor, which also has wind power plans southwest of Medicine Hat, saw shares fall by one-fifth to land at $20.22 at the bell.

Energy companies with operations in the region also saw double-digit percentage declines in trading, including TC Energy (down 13 per cent), and Pembina Pipeline (24 per cent lower).

The stock of International Petroleum Corporation (IPC Alberta) sat near $6 in early 2020, as the operator at the Suffield drilling acreage bought back shares and released positive earnings. Shares fell to $3.26 after a one-day loss of 22 per cent on Monday.

Petroleum companies with substantial interests in the southeast were also hammered:

– Canadian Natural Resources, down 29 per cent to $21.43;

– Pinecliff Energy lost 5.5 per cent to settle at 8.5-cents per share;

– Crescent Point, which has focused operations in Shaunavon, saw shares plummet 45 per cent to $1.20.

– Enerplus, which now focuses on Untied States operations, but maintains its partnership with the City of Medicine Hat to operate the northeast field, saw stocks fall 38 per cent to $2.90.

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