Toronto Stocks Down More Than 2% - Canadian Commentary

By IBTimes Staff Reporter | April 07 2009 3:09 PM

Bay Street stocks have moved notably lower again on Tuesday amid further profit-taking following last week's rally. Weakness in the heavily-weighted energy and financial sectors has led the way.

Sponsorship Link

The S&P/TSX Composite Index has dropped 193.99 or 2.15% to 8,822.18. The index is on pace for its lowest close in a week.

Mining stocks are down 4.7%. Teck Comino (TCK.B.TO) and First Quantum (FM.TO) have each dropped 5.6% and Inmet (IMN.TO) has declined 2.9%.

Financials are down 2.8% as all of the big six are in the red. National Bank (NA.TO) has dropped 3.8%, Scotiabank (BNS.TO) is down 2.7% and Royal Bank (RY.TO) has slipped 2.6%.

Royal Bank of Scotland Group said a cost-cutting plan could lead to job losses of up to 9,000 group manufacturing roles globally, including 4,500 in the UK, over the next two years.

Energy stocks are down about 2.9% with crude oil again experiencing weakness on the NYMEX. Light sweet crude for May delivery dropped to $48.95, down $2.10 for the session.

Among the big names, Encana (ECA.TO) has declined 5.2%, Canadian Natural Resources (CNQ.TO) is down 4.25% and Savanna (SVY.TO) is down 3.7%.

Homeland Energy Group Ltd. (HEG.TO) has erased early losses and is showing a 2.4% gain. The company said it appointed Andrew Gottwald as chief financial officer, effective April 15.

The Gold Index has gained 2.75% and materials stocks are up 1.1% as the precious metal has rebounded modestly. Agnico-Eagle Mines (AEM.TO) has added 3.4%, Goldcorp (G.TO) is up 2.7% and Barrick Gold (ABX.TO) has added 2.5%.

Gold for June delivery traded at $882.20, up $9.40 for the session. A gain would be the first in four sessions.

Alamos Gold (AGI.TO) rallied 3.9% after the company reported an increase in first quarter revenues to C$35.52 million from C$31.03 million.

In other corporate news, Garda Security Group (GW.TO) has surged 12.3% after the company said that the company has reached a two-year extension with CATSA.

Supermarket chain Loblaw Companies (L.TO) is up 0.75% after the company said it has been authorized the repurchase of up to 13,708,678 of its common shares, representing 5% of the currently outstanding shares, by way of a normal course issuer bid.

International Datacasting (IDC.TO) has plunged 17.7% after the company revealed fourth-quarter net income of C$1.6 million, compared to C$2.1 million in the same quarter of the previous year.

For comments and feedback: contact editorial@rttnews.com