RTTNews - Toronto stocks fell sharply on Tuesday and moved off of a multi-month low as falling commodity prices led to notable weakness in the resource sectors.
The S&P/TSX Composite Index fell 186.89 points or 1.73% to move at 10,570.54. The market fell for just the third time in 12 sessions.
Gold stocks dropped 4.3% and materials stocks fell 3.5%. August gold fell to $939.10 per ounce, down $14.40 for the session. Prices hit as low as $935.00 after touching $960 in the previous session.
Goldcorp (G.TO) fell 6.2% and Agnico-Eagle Mines (AEM.TO) dropped 5.4%, with both companies expected to report quarterly results tomorrow. On Tuesday, Agnico-Eagle Mines was initiated at Underweight by Barclays Capital.
Kinross (K.TO) dropped 6.2% after it was also initiated at Underweight by Barclays, with a target price of $14.
Energy stocks fell 1.9% as crude oil fell $1.15 to $67.23 on the NYMEX. Canadian Oil Sands (COS.UN.TO) slipped 1.2% after the company reported net income for the second quarter of $46 million or $0.10 per unit, compared with $497 million or $1.04 per unit a year ago.
Nexen (NXY.TO) fell 1.4%% after the company said it priced and agreed to issue US$1.0 billion of senior notes, consisting of US$300 million principal amount of 6.20% senior notes due July 30, 2019 and US$700 million principal amount of 7.50% senior notes due July 30, 2039.
Enbridge (ENB.TO) finished up 0.4% ahead of its quarterly earnings report, which is due on Wednesday.
Mining stocks fell 1.9% with Inmet (IMN.TO) dropping 1.3%. The company said its second-quarter net income decreased to C$66.5 million or C$1.37 per share from C$67.7 million or C$1.40 per share in the prior year period.
In other corporate news, Rogers Communications (RCI-A.TO) fell 1.2% after the wireless giant predicted fiscal 2009 revenue growth of 2% to 4%, compared with its prior estimate range of 5% to 9%. The company's net income for the quarter increased to C$374 million or C$0.59 per share, from C$301 million or C$0.47 per share reported in the same quarter of last year.
QLT (QLT.TO) dropped 4.5% after the company reported second-quarter net income of US$8.63 million, or US$0.16 per share, compared with a net loss of US$7.44 million, or US$0.10 per share, a year ago.
BioMS Medical Corp. (MS.TO) plunged more than 85% after the pharmaceutical company and its partner Eli Lilly and Co. (LLY) said that dirucotide did not meet the primary endpoint of delaying disease progression during the two-year MAESTRO-01 Phase III trial in patients with secondary progressive multiple sclerosis.
Cardiome Pharma Corp. (COM.TO) added 5.4% after the company said that it has earned a US$15 million milestone payment from its collaboration with Merck Co., Inc. (MRK), through an affiliate.
Magna International (MG.A.TO) dropped 4.3% as Bloomberg reported a German official said the company boosted its offer for Opel.
After the bell, Canadian Utilities (CU.TO) reported second-quarter earnings for the second-quarter declined to C$73.2 million or C$0.58 per share from C$82.7 million or C$0.66 per share in the prior-year quarter. The stock closed the session down 1.6%.
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