RTTNews - Bay Street stocks are sharply lower in early trading on Monday, led by further weakness in the energy and mining sectors.
The S&P/TSX Composite Index has dropped 221.09 points or 2.07% to move at 10,423.87. The index had hit a multi-month high above 10,700 last week.
Mining stocks are showing a 3.8% decline as copper has dropped 8.15 cents to $2.291 per pound. Inmet (IMN.TO) has slipped 4.6%, Teck Cominco (TCK.B.TO) is down 4% and First Quantum (FM.TO) has declined 3.4%.
Uranium One (UUU.TO) is up 3.1% after it announced that it has agreed to acquire a 50% interest in the Karatau Uranium Mine in Kazakhstan from JSC Atomredmetzoloto, the Russian state-owned uranium mining company. The purchase price will be paid by way of the issuance of 117 million common shares of Uranium One and a cash payment of US$ 90 million or equivalent promissory note.
Energy stocks are down 2.7% has dropped $1.68 to $70.36 per barrel. Canadian Natural Resources (CNQ.TO) is down 4.1%, Suncor (SU.TO) is down 3.5% and Canadian Oil Sands (COS.UN.TO) has dropped 2.5%.
EnCana Corp. (ECA.TO) has declined 2% after the company said it has extended its risk management program for 2010 by establishing fixed price hedges on about 35% of the company's expected natural gas production - about 1.39 billion cubic feet per day - at an average price of US$6.21 per thousand cubic feet for the 2010 gas year, which runs from November 1, 2009 to October 31, 2010.
NuVista Energy (NVA.TO) has slipped 1.6% after the company announced that it has agreed to acquire certain properties located in the Martin Creek area of northeast British Columbia and in northwest Alberta for about C$176 million.
Sun Life Financial (SLF.TO) has declined 1.25% after the company agreed to buy Lincoln National's U.K. insurance business for about $359 million in cash.
In economic news, Canadian manufacturing sales fell less than expected in April, edging down 0.1% from the previous month to $41.0 billion, according to Statistics Canada. Economists were a drop of more than 1% in April.
Meanwhile, new motor vehicle sales were basically unchanged at at 121,290 in April.
Across the border, the New York Federal Reserve said its general business conditions index fell to a negative 9.4 in June from a negative 4.55 in May, with a negative reading indicating a deterioration in conditions. Economists had expected the index to edge down to a negative 5.10.
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