Bay Street dropped again on Monday and finished at a 10-day low. The move mirrored that of U.S. and European stocks, which plunged on concerns over the banking and auto industries.
The S&P/TSX Composite Index has dropped 224.84 points or 2.54% to 8,596.22. The decline was the fourth in five sessions for the index.
Mining stocks plummeted 8%, surrendering some of a recent rally. FNX Mining (FNX.TO) plunged 14.3% after the company posted a fourth-quarter net loss of C$397.4 million or C$4.68 per share, compared to a profit of C$32.3 million or C$0.38 per share in the prior year quarter.
Financials dropped 4.3% after U.S. Treasury Secretary Timothy Geithner said some banks could need additional assistance. Bank of Montreal (BMO.TO) plunged 5.6%, Toronto-Dominion (TD.TO) and CIBC (CM.TO) lost 4.2% apiece, Scotiabank (BNS.TO) dropped 4.1%, Royal Bank (RY.TO) fell 3.2% and National Bank (NA.TO) dropped 2.4%.
Energy stocks are down 3.7% as crude oil fell below $50 per barrel. Savanna (SVY.TO) plunged 9.4%, Canadian Oil Sands (COS.UN.TO) dropped 7.5%, Vermilion Energy Trust (VET.UN.TO) dropped 6.4%, Canadian National Resources (CNQ.TO) lost 5.3% and Suncor (SU.TO) fell 3.8%.
Light sweet crude for May delivery finished the session at $48.41, down $3.97 for the session. Prices touched as low as $48.11 in mid-day trading.
Energy Fuels Inc. (EFR.TO) added 2.5% after the company said that it has agreed to acquire Magnum Uranium Corp. (MM.V) in an all share transaction. Under the deal, Magnum Uranium shares will be acquired at a share exchange ratio of 0.78 shares of Energy Fuels for each Magnum Uranium share.
In other corporate news, Research In Motion (RIM.TO) dropped 1.9% as a Wall Street Journal report said the Blackberry maker's profit margins may decline because of investments in advertising and new software.
Adherex Technologies (AHX.TO) surged 14.3%. The biopharmaceutical company reported a nearly flat loss for fiscal 2008. The company also announced that it would reduce workforce by 75% to counter its financial predicament.
LAB Research (LRI.TO) plunged 56% after the company reported fourth-quarter net loss from continuing operations of C$6.7 million, compared to net loss from continuing operations of C$1.7 million in the same 2007 period.
MDN (MDN.TO) soared 20.7% after the company reported a profit for the fiscal year 2008. The company's net earnings for 2008 were C$22.13 million or C$0.241 per share, compared to a net loss of C$11.41 million or $0.138 per share last year. Revenues for 2008 climbed to C$27.26 million from C$1.57 million in 2007.
Autoparts maker Magna International (MG.A.TO) lost 3.9% amid further worries for the auto industry. President Obama and his auto task force have indicated that General Motors (GM) and Chrysler have not gone far enough in their restructuring plans and need to step up their efforts to reorganize in order to receive additional government aid.
Additionally, at the request of the White House, Rick Wagoner is stepping down as chairman and CEO of General Motors, with Fritz Henderson, GM president and chief operating officer, set to replace Wagoner as CEO.
Meanwhile, optimism surrounding the G20 summit has waned, as investors fear that earlier hopes that the countries will agree to a coordinated fiscal boost appear to have been crushed by skepticism in many European governments.
Canadian Prime Minister Stephen Harper said the global recession could be getting worse and said international leaders need to reduce trade barriers. The comments come ahead of Thursday's Group of Twenty meeting in London.
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