stuffGlobe says EnCana, other energy stocks slipping
EnCana Corp (TSX:ECA)
Shares Issued 855,365,717
Last Close 10/12/2005 $57.81
Thursday October 13 2005 - In the News
Also Imperial Oil Ltd (TSX:IMO) In the News
Also Petro-Canada Inc (TSX:PCA) In the News
Also Shell Canada Ltd (TSX:SHC) In the News
The Globe and Mail reports in its Thursday, Oct. 13, edition that if you are counting on energy shares to snap the market out of its malaise, think again. The Globe's John Heinzl writes in the Market Moves column that on Thursday, oil and gas stocks were the worst performers on the S&P/TSX, as the energy index skidded 3.2 per cent. Shares slumped even as the price of oil rose 59 U.S. cents a barrel to $64.12 (U.S.) in New York, underlining fears that energy stocks are overvalued after their stunning rise this year. Whether such worries are justified should become apparent in the days ahead as companies report third quarter profits, says Mr. Heinzl. UBS Securities Canada analyst Brian Dutton predicts a solid quarter for the oil patch, but suggests "expectations may be even higher," which hardly sounds like a recipe for further gains. "Given the strong relative performance of Canadian oil and gas stocks, we remain somewhat cautious at current valuations," said Mr. Dutton. The Investment Reporter, in its Oct. 14 issue, advised investors with oil and gas stocks to take some profits off the table after the recent runup.
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