RTTNews - Canadian stocks remained notably lower on Wednesday and appear destined for a fourth straight finish in the red. Resource stocks are struggling on the day, contributing to the weakness.
The S&P/TSX Composite Index has lost 194.29 points or 1.88% to move at 10,113.11. The main index is on target for its lowest finish in more than three weeks.
Mining stocks are down 5.4%, adding to recent weakness. Teck Cominco (TCK.B.TO) has dropped 6.3%, Inmet (IMN.TO) is down 4.7% and First Quantum (FM.TO) has dropped 4.25%.
Materials stocks are down 3.9% as Potash (POT.TO) has plunged 9.3% after Europe's biggest producer of the fertilizer reportedly gave a bleak outlook for demand.
Agrium (AGU.TO) has dropped 6.8% 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%, although crude oil has moved modestly higher amid very choppy trading. Suncor (SU.TO) has lost 4.5%, Canadian Natural Resources (CNQ.TO) has dropped 3.4% and Encana (ECA.TO) is down 2.75%.
In corporate news, TransCanada Corp. (TRP.TO) is down 5.2% 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.
Research in Motion (RIM.TO) is down 3.4% as traders await the Blackberry-maker's quarter earnings report tomorrow. In a speech Wednesday, co-CEO Jim Balsillie said the company has more than 1 million government customers.
AutoCanada Income Fund (ACQ_U.TO) has 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.
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.
For comments and feedback: contact email@example.com