RTTNews - Bay Street have plunged on Monday, following the lead of the markets in Europe and the U.S.
Commodities are down across the board, contributing to the weakness.
The S&P/TSX Composite Index has dropped 242.70 points or 2.27% to move at 10,403.26. The index had hit a multi-month high above 10,700 last week.
Mining stocks are down 5.1% as copper has declined more than 3% on the Comex. Inmet (IMN.TO) has dropped 6.5%, Teck Cominco (TCK.B.TO) has lost 4.8% and First Quantum (FM.TO) and HudBay are both down 3.6%.
Uranium One (UUU.TO) has added 2.8% after it announced that it has agreed to acquire a 50% interest in the Karatau Uranium Mine in Kazakhstan from JSC Atomredmetzoloto, the Russian state-owned uranium mining company. The purchase price will be paid by way of the issuance of 117 million common shares of Uranium One and a cash payment of US$ 90 million or equivalent promissory note.
Energy stocks have 3.2% as crude oil is down more than $1.50 on the NYMEX to test $70 per barrel. Suncor (SU.TO) has dropped 3.7% and Canadian Natural Resources (CNQ.TO) have declined 3.6%.
EnCana Corp. (ECA.TO) is down 2.9% after the company said it has extended its risk management program for 2010 by establishing fixed price hedges on about 35% of the company's expected natural gas production - about 1.39 billion cubic feet per day - at an average price of US$6.21 per thousand cubic feet for the 2010 gas year, which runs from November 1, 2009 to October 31, 2010.
NuVista Energy (NVA.TO) has dropped 2.4% after the company announced that it has agreed to acquire certain properties located in the Martin Creek area of northeast British Columbia and in northwest Alberta for about C$176 million.
Paramount Energy Trust (PMT-UN.TO) is down 2% after the company extended the deadline for Albetra's offer to Profound Energy to June 15.
Materials stocks are down 2.9% and gold stocks have lost 2% as the precious metal fell to a three-week low. Iamgold (IMG.TO) has plunged 5%, Seabridge (SEA.TO) is down 4.9%, Yamana (YRI.TO) has declined 4% and Eldorado (ELD.TO) is down 3.8%.
Technology stocks are down 2.4%. Blackberry maker is down 1.8% ahead of its quarterly earnings report, which is due Thursday.
In other corporate news, Sun Life Financial (SLF.TO) has declined 1.25% after the company agreed to buy Lincoln National's U.K. insurance business for about $359 million in cash.
Air Canada (AC.A.TO) is down 0.7% as the Globe and Mail reported the airliner is seeking a loan of $600 million from a group of lenders that includes Ottawa.
On the economic front, Canadian manufacturing sales fell less than expected in April, edging down 0.1% from the previous month to $41.0 billion, according to Statistics Canada. Economists were a drop of more than 1% in April.
Meanwhile, new motor vehicle sales were basically unchanged at at 121,290 in April.
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