RTTNews - Resource stocks led Canada's main index notably lower on Monday. The market was able to recover some of its daily losses, but remained off of last week's multi-week high.
The S&P/TSX Composite Index dropped 109.76 points or 0.99% to settle at 10,868.21. The index tested 10,770 in the morning, after topping 11,000 last week.
Mining stocks finished down 2.7% as copper lost 11.5 cents at $2.808 per pound. Teck Resources (TCK.B.TO) dropped 4.1%, First Quantum (FM.TO) fell 3.2% and Inmet (IMN.TO) slipped 2.75%.
Energy stocks fell 2.1% as crude oil finished below $70 for the first time in two weeks. Canadian Natural Resources (CNQ.TO) and Suncor (SU.TO) dropped 2.7% and Encana (ECA.TO) fell 2.8%.
Industrials fell 2%. Canadian Pacific (CP.TO) dropped 4.2% after the stock was downgraded to Neutral from Buy at UBS. Rival Canadian National Railway (CNR.TO) declined 2%.
On the corporate front, Torstar (TS.B.TO) slipped 1.4% after the shares were downgraded to Underperform from Sector Perform at National Bank.
Toronto Dominion (TD.TO) finished up 0.5% after erasing an early drop after receiving some upgrades. The stock was upgraded to Outperform from Sector Perform at RBC Capital Markets and to Sector Perform from Sector Underperform at Scotia Capital.
Arehada Mining Ltd. (AHD.TO) said that it has received repayment in the total amount of RMB 57 million of the related party loan from Baiyinhanshan Mining Group Ltd., a company controlled by Messrs. The stocks surged more than 35%.
Across the border, Walt Disney said it has agreed to acquire Marvel Entertainment in a cash and stock transaction valued at about $4 billion.
In corporate news, Canadian real gross domestic product increased 0.1% in June, as expected, according to Statistics Canada. In the second quarter, GDP shrank at an annual rate of 3.4%, compared with a contraction of 6.1% in the first quarter.
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