RTTNews - Toronto stocks have moved lower in Monday morning trading, surrendering some of last week's gains. Resource stocks have led the decline, which has mirrored the markets in the U.S. and Europe.
The S&P/TSX Composite Index has dropped 98.13 points or 0.92% to move at 10,471.16.
Mining stocks are down about 2% to lead the decliners. Teck Cominco (TCK.B.TO) is down about 2%, Inmet (IMN.TO) has lost 1.6% and First Quantum (FM.TO) is down 1.25%.
Materials stocks have dropped 1.8% and gold stocks are down 1.6% as the precious metal fell $12.70 to $949.90 per ounce. New Gold (NGD.TO) has dropped 2.7%, Eldorado (ELD.TO) is down 2.1% and Agnico-Eagle Mines (AEM.TO) has dropped 1.75%.
The Energy Index is down 1.5%, although crude oil has pared its early slide. Canadian Oil Sands (COS.UN.TO) has dropped 2.5%, Suncor (SU.TO) is down 2.1% and Canadian Natural Resources (CNQ.TO) has dropped 1.7%.
In corporate news, Silvercorp Metals (SVM.TO) said it intends to make an offer to acquire Klondex Mines (KDX.TO). Pursuant to the offer, Klondex shareholders will be entitled to receive 0.50 common shares of Silvercorp for each Klondex common share validly tendered to the offer, representing approximately C$2.18 per Klondex common share. On the news, Klondex has surged more than 40%, while Silvercorp is down about 10%.
Air Canada (AC-A.TO) has lost 2.1% after the airliner reported load factor for the month of May of 79.5% on a consolidated basis with Jazz, compared to 83.2% in May 2008, a decrease of 3.7 percentage points.
Addax Petroleum (AXC.TO) has surged 11% after acknowledging it has had preliminary talks with third parties regarding a possible acquisition or merger.
In economic news, housing starts increased to 128,400 units in May from 117,600 units in April, Canada Mortgage and Housing Corporation (CMHC) said in its monthly report released Monday morning. Economists anticipated 126,000 starts.
On Friday, Toronto's main index added 92.05 points or 0.87% to settle at 10,569.29. The index rallied about 200 points for the week.
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