RTTNews - Toronto stocks plunged to their lowest level in more than six weeks, led by significant weakness in the resource and financial sectors. The weakness mirrors the U.S. and European markets and follows comes after a bleak forecast from the World Bank for the world economy.
The S&P/TSX Composite plummeted 453.77 points or 4.41% to end at 9,834.18, This marks the lowest finish since May 15.
Mining stocks plunged 9.2% as copper dropped 11.85 cents to $2.132 per pound. Teck Resources (TCK.B.TO) dropped 11% to lead the decliners, while HudBay (HBM.TO) fell 10.8%.
Thompson Creek Metals (TCM.TO) fell 8.9% after being downgraded to Hold from Buy at Deutsche Bank Securities.
Denison Mines (DML.TO) declined 9.2% after the company closed its previously announced bought deal financing by selling 40 million shares to a syndicate of underwriters at C$2.05 per common share to raise gross proceeds of C$82 million.
Energy stocks has dropped 6.5% as oil lost $2.62 to end at $66.93 per barrel. Suncor (SU.TO) fell 8.6%, Canadian Oil Sands (COS.UN.TO) dropped 8.2%, Canadian Natural Resources (CNQ.TO) declined 7.1% and Encana (ECA.TO) lost 5.8%.
Materials stocks fell 6% and gold stocks dropped 5.5% as the precious metal declined $15.20 on the Comex. Eldorado Gold (ELD.TO) fell 7.7% and Agnico-Eagle Mines (AEM.TO) dropped 6.2%.
Financials lost 3.5% with all of the big six banks in the red. National Bank (NA.TO) fell 2.1% and Toronto-Dominion (TD.TO) dropped 2.1%.
Scotiabank (BNS.TO) slipped 1.2% as the lender could look for asset-management acquisitions in Latin America, according to Bloomberg.
Manulife (MFC.TO) plunged 12.2% as the Ontario Securities Commission is reportedly investigating the company.
CAE (CAE.TO) ended down 1.2% after the company said it will spend up to C$274 million in expansion into mining and energy over the next seven years.
Methanex (MX.TO) plunged 7.1% after the shares were downgraded to Outperform from Strong Buy at Raymond James.
In economic news, Statistics Canada reported employment rose to 2.7% to about 700,000 in the month of April.
On Friday, the S&P/TSX Composite Index rose 166.45 or 1.64% to settle at 10,287.95. The market had hit a three-week closing low on Wednesday.
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