RTTNews - Commodities dragged Toronto stocks notably lower on Monday as Bay Street's main index lost more than 2%. Traders continued to collect profits on last week's eight-month high.
The S&P/TSX Composite Index dropped 250.18 points or 2.35% to end at 10,394.78. The index had reached above 10,700 last week for the first time since early October.
Mining stocks fell 4.9% as copper dropped more than 3% on the Comex. Inmet (IMN.TO) plunged 7.1%, Teck Cominco (TCK.B.TO) dropped 4.6% and First Quantum (FM.TO) fell 4.1%.
Meanwhile, Uranium One (UUU.TO) rose 3.9% 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.
Energy stocks shed 3.4% as crude oil dropped on the NYMEX. Suncor (SU.TO) dropped 4%, Canadian Natural Resources (CNQ.TO) declined 3.6% and Canadian Oil Sands (COS.UN.TO) fell 3.2%.
EnCana Corp. (ECA.TO) fell 2.7% 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) declined 2.5% 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.
Materials stocks fell 2.75% and gold stocks slipped 1.8% as the precious metal fell to a three-week low. New Gold (NGD.TO) fell 6.6%, Iamgold (IMG.TO) dropped 4.6%, Eldorado (ELD.TO) declined 4.1% and Seabridge (SEA.TO) lost 3.5%.
In other corporate news, Sun Life Financial (SLF.TO) declined 1.25% after the company agreed to buy Lincoln National's U.K. insurance business for about $359 million in cash.
Air Canada (AC.A.TO) finished up 1.4%. The Globe and Mail reported the airliner is seeking a loan of $600 million from a group of lenders that includes Ottawa.
Helix BioPharma Corp. (HBP.TO) dropped 5.7% after the company reported a third-quarter loss of C$4.13 million or C$0.08 per share, compared to a loss of C$1.14 million or C$0.03 per share in the prior- year period.
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.
On Tuesday morning, labor productivity data for the first quarter is due at 8:30 a.m. ET. A drop of 0.2% is expected, compared to a decline of 0.5% in the prior quarter.
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