Toronto stocks remained lower on Monday afternoon as swine flu worries have raised concerns economic recovery could be slowed. With the decline, Toronto's main index has moved off of a five-month high.
The S&P/TSX Composite Index has dropped 120.82 points or 1.26% to move at 9,428.66 points. The index in on pace for its first daily decline since last Monday's plunge.
Energy stocks have dropped 2.2% with crude oil falling below $50 per barrel again. Canadian Oil Sands (COS.UN.TO) is down 2.7%, Encana (ECA.TO) has declined 2.6% and Canadian Natural Resources (CNQ.TO) is down 2.2%.
Nexen (NXY.TO) has lost 4.2% after the stock was downgraded to Neutral to Buy at Dundee Securities.
Industrials are also down about 2%. Canadian National Railway (CNR.TO) and rival Canadian Pacific Railway (CP.TO) are each down about 2.7%.
In other corporate news, Thompson Creek Metals has surged 10% after the stock was initiated at Overweight by JPMorgan Chase.
HudBay Minerals (HBM.TO) has surged 8.2% amid a report in the Globe and Mail that Indian mining company Lakomasko has purchased about 10% of the struggling Canadian zinc and copper producer.
Tundra Semiconductor (TUN.TO) has soared 14.7% after the announcement it has received an all-cash buyout offer from Integrated Device Technology at a price of C$6.25 per share or about C$120.8 million.
Meanwhile, troubled automaker General Motors Corp. (GM) said Monday that it will cut 21,000 U.S. hourly jobs and reduce its U.S. dealer count by 42% by the end of 2010 under a revised viability plan meant to accelerate and deepen the restructuring of its U.S. operations, as the company races to stave off bankruptcy.
The S&P/TSX Composite Index rallied 139.98 points or 1.48% on Friday to end at 9,549.48, its best finish since November 10. With the rally, Toronto's main index added 112.33 points for the week, erasing a sharp plunge from Monday.
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