RTTNews - Toronto stocks have dropped to their lowest level in more than six weeks, following the lead of U.S. and European markets. The weakness comes after a bleak outlook from the World Bank for the world economy.
The S&P/TSX Composite Index has fallen 377.94 points or 3.68% to move at 9,908.85. The index fell below 10,000 for the first time since May 26.
Mining stocks have plunged 8.6% as copper has headed sharply lower on the Comex. HudBay (HBM.TO) has declined 9% and Teck Cominco (TCK.B.TO) is down 8.7%.
Thompson Creek Metals (FCM.TO) has lost 7.6% after being downgraded to Hold from Buy at Deutsche Bank Securities.
Denison Mines (DML.TO) has declined 7.7% 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 are down 5.3%. Suncor (SU.TO) has dropped 7.5%, Canadian Oil Sands (COS.UN.TO) is down 6.6%, Canadian Natural Resources (CNQ.TO) has dropped 5.7% and Encana (ECA.TO) is down 5%.
Financials are down 3% with all of the big six banks in the red. Royal Bank (RY.TO) has lost 1.5%, while Bank of Montreal and Toronto-Dominion (TD.TO) is down 1%.
Scotiabank (BNS.TO) is down 0.8% as the lender could look for asset-management acquisitions in Latin America, according to Bloomberg.
CAE (CAE.TO) is down 1% 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) has dropped 6.5% 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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