RTTNews - Bay Street's main index finished sharply lower on Wednesday as copper and oil prices dragged resource stocks into the red. Toronto stocks followed the direction of markets in the U.S. and Europe.
The S&P/TSX Composite fell 241.29 points or 2.34% to settle at 10,066.11. This marks the lowest finish since May 22.
Mining stocks fell 4.9% as Teck Cominco (TCK.B.TO) surrendered 5.2%, First Quantum (FM.TO) fell 5.1%, Inmet (IMN.TO) dropped 1.8% and HudBay (HBM.TO) lost 1.7%.
Energy stocks lost 3.5%. Suncor (SU.TO) plunged 5.2%, Canadian Natural Resources (CNQ.TO) dropped 3.8%, Encana (ECA.TO) fell down 3.4% and Canadian Oil Sands (COS.UN.TO) lost 2.7%.
Materials stocks are down 3.4% as Potash (POT.TO) plunged 10.5% after Europe's biggest producer of the fertilizer reportedly gave a discouraging demand outlook. Rival Agrium (AGU.TO) fell 7.2%.
In other corporate news, TransCanada Corp. (TRP.TO) dropped 5.1% after the stock was reiterated by Credit Suisse at a Neutral rating, while its price target was lowered to C$35 from C$38. The brokerage reduced its 2009 EPS estimate to C$2.05 from C$2.19, and its 2010 estimate to C$2.23 from C$2.41.
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.
AutoCanada Income Fund (ACQ_U.TO) dropped 2.2% 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.
Investors awaited Canadian consumer price index data for the month of May, which is set for release at 7 a.m. ET tomorrow. CPI is expected to fall 0.1% from the previous month and gain 0.4% year-over-year.
After the bell on Thursday, Blackberry-maker Research in Motion (RIM.TO) is expected to report quarterly earnings. Shares closed Wednesday's session down 4.1%.
For comments and feedback: contact email@example.com