RTTNews - Canadian stocks have plunged again on Wednesday morning amid further weakness in the mining and energy sectors. The drop has taken Toronto's main index to its lowest level since May 26.
The S&P/TSX Composite Index has dropped 239.33 points or 2.32% to move at 10,065.87. The index is on target for a fourth straight negative finish.
Mining stocks have plunged 6.6% as copper has declined 1.75 cents to $2.2385 per pound. Teck Cominco (TCK.B.TO) has dropped nearly 8%, First Quantum (FM.TO) has declined 5.9% and Inmet (IMN.TO) is down 5.5%.
Materials stocks are down 3.9% as Potash (POT.TO) has dropped 7% after Europe's biggest producer of the fertilizer reportedly gave a bleak outlook for demand.
Agrium (AGU.TO) has dropped 6.5% after the company said the independent proxy voting and corporate governance advisory firm RiskMetrics Group, has recommended stockholders of CF Industries Holdings (CF),to tender their shares into Agrium's exchange offer of $40.00 in cash plus one Agrium share per CF share.
Energy stocks are down 3.3% as crude oil has dropped below $70 per barrel on the NYMEX. Suncor (SU.TO) is down 4.6% and Canadian Natural Resources (CNQ.TO) has dropped 4.1% to lead the decliners.
In corporate news, AutoCanada Income Fund (ACQ_U.TO) has dropped 3.9% after the company said that it has signed agreements with GMAC and Chrysler Financial Canada whereby GMAC shall provide AutoCanada with wholesale floor plan funding for each of its owned dealerships.
TransCanada (TRP.TO) has dropped 5.2% after the company said it agreed to acquire ConocoPhillips's stake in the Keystone Pipeline System for approximately US$550 million plus the assumption of approximately US$200 million of short-term debt.
In economic news, Canadian wholesale sales in current dollars fell for a seventh straight month in April, declining 0.6% to $40.3 billion, according to data released Wednesday by Statistics Canada. Economists expected wholesale sales to drop 0.7 percent in April.
Canada's leading indicator dropped 0.1% in May, marking its ninth consecutive monthly decline. However, the rate of the decline slowed considerably due to a comeback in the stock market.
Across the border, a Commerce Department report showed that consumer prices edged up 0.1 percent in May after coming in unchanged in April. Economists had been expecting a somewhat more substantial increase in prices of about 0.3 percent.
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