Bay Street stocks have moved sharply lower in Monday morning trading, backing off of a three-month high. Weakness in the mining and energy sectors have led the downfall.
The S&P/TSX Composite Index has dropped 243.83 points or 2.58% to move at 9,193.82. The market had been trending sharply higher for six weeks before the decline.
Mining stocks are down 9% as copper has dropped more than 4% on the Comex. Among the big names, Teck Cominco (TCK.B.TO) has plunged 12.6%, FNX Mining (FNX.TO) has plummeted 12%, First Quantum (FM.TO) has dropped 9.6% and Thompson Creek Metals (TCM.TO) has lost 9.2%.
Energy stocks have plunged 5.6% as crude oil has dropped below $48 per barrel on the NYMEX. Suncor (SU.TO) has dropped 8%, Canadian Natural Resources (CNQ.TO) has declined 5.8% and Vermilion Energy Trust (VET.UN.TO) has dropped 4.9%.
Angle Energy (NGL.TO) has slipped 1.1% 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.
Also on Monday, Precision Drilling Trust (PDS) and 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.
Industrial stocks are down 4%. Canadian National Railway (CNR.TO) has dropped 4.8% ahead of its quarterly earnings report. Rival Canadian Pacific Railway (CP.TO) has plunged 5.4%.
Financials have lost 3.2% with all of the big six banks sharply lower. CIBC (CM.TO) is down 3.4%, while Toronto-Dominion (TD.TO), Bank of Montreal (BMO.TO) and National Bank (NA.TO) have all lost about 3.2%.
Technology stocks are down 2.5% as Research in Motion (RIM.TO) has dropped 3%. 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 slipped 2.3% 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.
Energy Savings Income Fund (SIF-UN.TO) has added 2.1% after the company said it agreed to extend the 30-day exclusivity period with Universal Energy Group, Ltd. regarding a potential acquisition of that company.
Mitec Telecom (MTM.TO) has surged 15.4% 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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