Toronto stocks remain sharply lower on Monday, with weakness in the key financial and energy sectors contributing to the losses. The drop has taken the market away from a three-month high seen last week.
The S&P/TSX Composite Index has dropped 271.39 points or 2.87% to move at 9,166.26. With the decline, Toronto's main index gave back some of the gains it had accumulated in a six-week long rally.
Mining stocks have plunged 9.2% as copper has dropped on the Comex. Among the big names, Teck Cominco (TCK.B.TO) has plummeted 13%, First Quantum (FM.TO) has declined 12.3% FNX Mining (FNX.TO) has dropped 11%, and Thompson Creek Metals (TCM.TO) has lost 7.5%.
Energy stocks have plunged 5.7% as crude oil has dropped below $47 per barrel on the NYMEX. Suncor (SU.TO) has plunged 7.4%, Canadian Natural Resources (CNQ.TO) has declined 6.5%, Vermilion Energy Trust (VET.UN.TO) has dropped 6.1% and Canadian Oil Sands (COS.UN.TO) has slid 5.5%.
Precision Drilling Trust (PD.UN.TO) has dropped 8.7% after the company, along with Precision Drilling Corporation, revealed a series of financing transactions to raise up to approximately $380 million which would be used to strengthen the Trust's balance sheet by refinancing and restructuring the debt incurred in the acquisition of Grey Wolf, Inc. that was completed in December of 2008.
Angle Energy (NGL.TO) has slipped 1.4% after it disclosed the closing of a new syndicated banking facility. The banking syndication is lead by the Canadian Imperial Bank of Commerce and includes Alberta Treasury Branch.
Financials have lost 4.3% with all of the big six banks sharply lower. Toronto-Dominion (TD.TO) has dropped 4.5%, CIBC (CM.TO) has declined 4.3%, National Bank (NA.TO) has lost 4.1% and Bank of Montreal (BMO.TO) is down 3.9%.
Industrial stocks are down 3.2%. Canadian National Railway (CNR.TO) has dropped 4.6% ahead of its quarterly earnings report. Rival Canadian Pacific Railway (CP.TO) has lost 4.8%.
Technology stocks are down 3% as Research in Motion (RIM.TO) has declined 3.1%. In the big news of the day, Oracle Corp. (ORCL) announced a deal to acquire Sun Microsystems (JAVA) common stock for $9.50 per share in cash. This transaction is valued at approximately $7.4 billion, or $5.6 billion net of Sun's cash and debt.
In other corporate news, Agrium (AGU.TO) has dropped 1.75% after urging the stockholders of CF Industries Holdings (CF) to withhold votes for CF's three director nominees up for election at CF's 2009 Annual Meeting of Stockholders on Tuesday.
Dundee Corp. (DC.A.TO) has dropped 7.9% as the company said it has acquired an aggregate of 57.96 million units of Breakwater Resources at a price of C$0.10 per unit pursuant to Breakwater's previously announced public offering.
Mitec Telecom (MTM.TO) has gained 7.7% after the company said it has received a multi-site order from a major Canadian telecom operator. This new order resulted from a successful network trial involving the company's coverage solution products, which was announced in February.
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