RTTNews - Resource stocks have pulled Toronto's main index to its lowest level in more than two months. The market seems destined for its third straight decline this week.
The S&P/TSX Composite Index has plunged 284.12 points or 2.88% to move at 9,560.23. The index is on target for its lowest close since May 1.
Mining stocks have plunged 7.5% as copper fell more than 6 cents on the Comex. HudBay (HBM.TO) has dropped 9.6%, Inmet (IMN.TO) has lost 7.5% and First Quantum (FM.TO) is down 6.7%.
Teck Resources (TCK-B.TO) has plunged 8% as the company said it closed the previously announced US$245 million sale of its 40% interest in the Pogo gold mine in Alaska to affiliates of Sumitomo Metal Mining Co. and Sumitomo Corp.
Materials stocks have dropped 5% and gold stocks are off 4.6% as the precious metal declined $19.80 to close at $909.30 per ounce, its lowest close in better than two months. Eldorado (ELD.TO) has lost 7.1%, Agnico-Eagle Mines is down 5.7% and Goldcorp (G.TO) is 4.9% lower.
Energy stocks are down 3% as crude oil has dropped sharply in NYMEX trading. Canadian Natural Resources (CNQ.TO) is down 3.9%, Canadian Oil Sands (COS.UN.TO) has dropped 3.2% and Encana (ECA.TO) is down 2.7%.
Baytex Energy Trust (BTE_U.TO) has lost 4.4% after the company announced that it has agreed to acquire predominantly heavy oil assets located in the Kerrobert and Coleville areas of southwest Saskatchewan, plus certain natural gas assets located in the Ferrier area of west central Alberta. The deal is worth about $93 million.
Suncor (SU.TO) saw its target price raised to $50 from $49 by Barclays Capital. The stock kept its Overweight rating. However, the shares are 2.1% lower.
In other corporate news, Viterra (VT.TO) said it expects average grain marketings in the 2009- 10 crop year based on current crop, weather conditions and a significant carryout of production from 2008-09. Shares are down 0.7%.
George Weston (GW.TO) shares are down 3.1% despite being upgraded to Outperform from Neutral at Credit Suisse.
Research in Motion (RIM.TO) is down 3%. The Blackberry maker's stock has been initiated at Buy at Calyon Securities USA.
Powertech Uranium (PWE.TO) has plunged 10.7% after the company signed two option agreements for the purchase of an aggregate of 3,585 acres of land in Colorado. The optioned properties are adjacent to the existing northern portion of the Company's Centennial Project.
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