Bay Street stocks plunged more than 300 points on Monday, following the lead of U.S. and European markets. The key mining, energy and financial sectors posted significant declines to lead the way.
The S&P/TSX Composite Index fell 311.50 points or 3.3% to move at 9,126.15. The finish was the lowest since April 8 for Toronto's main index, which had reached a three-month high last week.
Mining stocks plunged 10.1%, dragged lower as copper fell more than 4% on the Comex. Among the big names, Teck Cominco (TCK.B.TO) plummeted 14.8%, First Quantum (FM.TO) declined 12.5% FNX Mining (FNX.TO) has dropped 11.5% and Thompson Creek Metals (TCM.TO) lost 8.3%.
Energy stocks plunged 6.5% as crude oil dropped $4.45 to $45.88 per barrel, posting its lowest close in five weeks. Suncor (SU.TO) plunged 7.7%, Canadian Oil Sands (COS.UN.TO) dropped 7.5%, Canadian Natural Resources (CNQ.TO) declined 6.3% and Encana (ECA.TO) fell 5.1%.
Precision Drilling Trust (PD.UN.TO) dropped 8.1% after the company, along with Precision Drilling Corporation, revealed a series of financing transactions to raise up to approximately $380 million which would be used to strengthen the Trust's balance sheet by refinancing and restructuring the debt incurred in the acquisition of Grey Wolf, Inc. that was completed in December of 2008.
Angle Energy (NGL.TO) slipped 1.4% after it disclosed the closing of a new syndicated banking facility. The banking syndication is lead by the Canadian Imperial Bank of Commerce and includes Alberta Treasury Branch.
Financials lost 5.1% with all six big banks ending notably lower. CIBC (CM.TO) dropped 6.3%, National Bank (NA.TO) lost 5.8%, Toronto-Dominion (TD.TO) dropped 5.4% and Bank of Montreal (BMO.TO) fell 5.1%.
Industrial stocks are down 3.2%. Canadian National Railway (CNR.TO) dropped 4.5% ahead of its quarterly earnings report. After the closing bell, the company reported adjusted net income of C$304 million or C$0.64 per share, compared to C$300 million or C$0.62 per share in the prior year quarter.
Technology stocks fell 3.1% as Research in Motion (RIM.TO) declined 3.35%. In the big news of the day, Oracle Corp. (ORCL) announced a deal to acquire Sun Microsystems (JAVA) common stock for $9.50 per share in cash. This transaction is valued at approximately $7.4 billion, or $5.6 billion net of Sun's cash and debt.
In other corporate news, Agrium (AGU.TO) slipped 1.5% after urging the stockholders of CF Industries Holdings (CF) to withhold votes for CF's three director nominees up for election at CF's 2009 Annual Meeting of Stockholders on Tuesday.
Dundee Corp. (DC.A.TO) dropped 11.7% as the company said it has acquired an aggregate of 57.96 million units of Breakwater Resources at a price of C$0.10 per unit pursuant to Breakwater's previously announced public offering.
Mitec Telecom (MTM.TO) gained 7.7% after the company said it has received a multi-site order from a major Canadian telecom operator. This new order resulted from a successful network trial involving the company's coverage solution products, which was announced in February.
Timminco (TIM.TO) plunged nearly 38% after the maker of silicon for the solar photovoltaic energy industry said it is in discussions with customers on alternatives to the existing contractual commitments. Additionally, the company said it is considering an equity offering of $15 million.
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