Bay Street stocks have moved sharply lower on Friday, following the lead of foreign markets. If the losses hold, this would be the fourth decline in five sessions.
The S&P/TSX Composite Index has dropped 274.61 points or 3.11% to 8,546.45. The index has moved to a 10-day low.
Stocks have declined after the U.S. government stated that bankruptcy might be the best solution for troubled automakers in the country, including General Motors, whose CEO Rick Wagoner has been forced to quit the job.
Mining stocks have led the way with a 6.3% decline. FNX Mining (FNX.TO) has plunged 15.25% after the company posted a fourth-quarter net loss of C$397.4 million or C$4.68 per share, compared to a profit of C$32.3 million or C$0.38 per share in the prior year quarter.
Financials are down 5.3% with all of the big six banks showing a loss of at least 4%. Scotiabank (BNS.TO) has plummeted 5.6%, Bank of Montreall (BMO.TO) has lost 5.4%, National Bank (NA.TO) is down 4.9%, Toronto-Dominion (TD.TO) is down 4.7%, Royal Bank (RY.TO) has lost 4.3% and CIBC (CM.TO) is off 4.2%.
Energy stocks are down 4.6% as crude oil has lost $2.14 to $50.24 per barrel. Savanna (SVY.TO) is down 8.4%, Canadian Oil Sands (COS.UN.TO) has dropped 7.4% and Baytex (BTE.UN.TO) is down 5.4%.
In corporate news, Research In Motion (RIM.TO) has dropped 3% as a Wall Street Journal report said the Blackberry maker's profit margins may decline because of investments in advertising and new software.
Adherex Technologies (AHX.TO) has added 14.2%. The biopharmaceutical company reported a nearly flat loss for fiscal 2008. The company also announced that it would reduce workforce by 75% to counter its financial predicament.
LAB Research (LRI.TO) has plunged 20% after the company reported fourth-quarter net loss from continuing operations of C$6.7 million, compared to net loss from continuing operations of C$1.7 million in the same 2007 period.
Canadian Prime Minister Stephen Harper said the global recession could be getting worse and said international leaders need to reduce trade barriers. The comments come ahead of Thursday's Group of Twenty meeting in London.
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