RTTNews - Canadian stocks have plunged to a monthly low on Monday as the World Bank reduced its global gross domestic estimate. The drop followed the lead of U.S. and European markets and came as commodities fell sharply.
The S&P/TSX Composite has dropped 358.11 or 3.48% to move at 9,929.84. The index fell below 10,000 for the first time since May 26.
Mining stocks have dropped 6.7% as copper is down 6.5 cents to $2.1855 per pound. Teck Cominco (TCK.B.TO) has dropped 7.2%, First Quantum (FM.TO) is down 7% and Inmet (IMN.TO) is down 6.4%.
Denison Mines (DML.TO) has dropped 7.7% after the company closed its previously announced bought deal financing by selling 40 million shares to a syndicate of underwriters at C$2.05 per common share to raise gross proceeds of C$82 million.
Fresnillo announced that subsidiary Fresbal Investments withdrew its proposal for the remaining shares of MAG Silver Corp. (MAG.TO) saying it is no longer in the best interests of Fresnillo shareholders. MAG Silver's stocks is down 3.8%.
Energy stocks are down 5% as crude oil is off $2.57 to $66.98 per barrel. Suncor (SU.TO) has dropped 8%, Canadian Oil Sands (COS.UN.TO) is down 6% and Canadian Natural Resources (CNQ.TO) is down 5.2%.
Gold stocks have dropped 4.1% and materials stocks have lost 4%. New Gold (NGD.TO) is down 5%, Agnico-Eagle Mines (AEM.TO) has lost 4.8% and Goldcorp (G.TO) is down 4.4%.
Financials are down 3.3%. Scotiabank (BNS.TO) is down 1.1% as the lender could look for asset-management acquisitions in Latin America, according to Bloomberg.
In other corporate news, Nortel Networks (NT.TO) is in advanced discussions with potential buyers for its main business operations and is likely to announce further asset sales soon, the Financial Times reported Sunday. The stock is flat on Monday morning.
CAE (CAE.TO) is down 0.7% after the company said it will spend up to C$274 million in expansion into mining and energy over the next seven years.
In economic news, Statistics Canada reported employment rose to 2.7% to about 700,000 in the month of April.
On Friday, the S&P/TSX Composite Index rose 166.45 or 1.64% to settle at 10,287.95. The market had hit a three-week closing low on Wednesday.
For comments and feedback: contact firstname.lastname@example.org