RTTNews - Bay Street stocks pulled off their lows of the day, but still finished at their worst closing level in more than two months. Resource stocks led the decliners as commodities prices fell on demand concerns.
The S&P/TSX Composite Index fell 190.90 points or 1.93% to end at 9,563.45. The index had dipped below 9,550 in mid-afternoon deals.
Mining stocks have plunged 7.5% as copper slipped 6.65 cents to $2.159 a pound. Inmet (IMN.TO) dropped 6%, First Quantum (FM.TO) fell 5.4% and Teck Cominco (TCK.B.TO) lost 5.2%.
Teck Resources (TCK-B.TO) lost 5.1% as the company said it closed the previously announced US$245 million sale of its 40% interest in the Pogo gold mine in Alaska to affiliates of Sumitomo Metal Mining Co. and Sumitomo Corp.
Materials stocks slipped 3.9% and gold stocks fell 3.8% as the precious metal lost $19.80 to close at $909.30 per ounce, its lowest close in better than two months. Eldorado (ELD.TO) lost 6.1%, Agnico-Eagle Mines declined 4.6% and Barrick Gold (ABX.TO) fell 4.1%.
Energy stocks fell 1.9% as crude oil fell toward $60 per barrel. Canadian Oil Sands (COS.UN.TO) declined 2.8%, Canadian Natural Resources (CNQ.TO) dropped 2.3% and Encana (ECA.TO) fell 1.7%.
Baytex Energy Trust (BTE_U.TO) has lost 4.4% after the company announced that it has agreed to acquire predominantly heavy oil assets located in the Kerrobert and Coleville areas of southwest Saskatchewan, plus certain natural gas assets located in the Ferrier area of west central Alberta. The deal is worth about $93 million.
Suncor (SU.TO) saw its target price raised to $50 from $49 by Barclays Capital. The stock kept its Overweight rating. However, the shares finished down 1%.
In other corporate news, George Weston (GW.TO) shares dropped 4.9% despite being upgraded to Outperform from Neutral at Credit Suisse.
Research in Motion (RIM.TO) dropped 1.4%. The Blackberry maker's stock has been initiated at Buy at Calyon Securities USA.
Powertech Uranium (PWE.TO) plunged 10.9% after the company signed two option agreements for the purchase of an aggregate of 3,585 acres of land in Colorado. The optioned properties are adjacent to the existing northern portion of the Company's Centennial Project.
On the economic front, housing starts data is expected at 8:15 a.m. ET. The report is expected to show housing starts climbed to 130,000 in June, compared to 128,400 in May.
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