Canadian stocks ended at a three-week low Monday, as resource issues dropped on eurozone concerns ahead of the European Union summit meeting later in the week. Global equity and commodity markets slipped with investors cautious ahead of the summit with little or no hopes of any resolution to the eurozone financial mess. The highpoint of the summit would likely be Greece's attempt to renegotiate some of the terms of its bailout program, with stiff resistance expected from members.
Toronto's main index, the S&P/TSX, closed Monday at 11,330.39, down 105.15 points or 0.92 percent. The S&P/TSX Composite Index touched an intraday high of 11,419.83 and a low of 11,295.06.
The TSX Venture Index closed at 1,175.64, down 30.39 points or 2.52 percent. The index opened at 1,197.61 compared to its previous close of 1,206.03.
Most major components of the S&P/TSX Index were deep in the red, led mainly by the Diversified Metals & Mining, Energy, and Financial indices.
The Diversified Materials Index dropped 2.84 percent, with Teck Resources (TCK_B.TO) down 3.31 percent and Lundin Mining Corp. (LUN.TO) down 2.18 percent. Inmet Mining Corp. (IMN.TO) shed 2.17 percent, while First Quantum Minerals Ltd. (FM.TO) slipped 2.38 percent.
U.S. crude oil futures for August delivery, dropped $0.55 or 0.7 percent to close at $79.21 a barrel Monday on the NYMEX.
The Energy Index plummeted 2.09 percent with Suncor Energy Inc. (SU.TO) shedding 1.95 percent, Canadian Natural Resources Limited (CNQ.TO) down 1.19 percent, and Encana Corp. (ECA.TO) slipping 3.73 percent. Talisman Energy Inc. (TLM.TO) dropped 3.43 percent.
The Financial Index slipped 1.35 percent. Among financial stocks, Royal Bank (RY.TO) dropped over 1.94 percent, Bank of Nova Scotia (BNS.TO) was down 1.06 percent, and Toronto-Dominion Bank (TD.TO) surrendered 1.08 percent. Manulife Financial Corp. (MFC.TO) shed 2.85 percent.
Research In Motion Ltd. (RIM.TO) plunged 7.51 percent amid reports that the smartphone maker is planning to split its business into two by separating its handset division from its messaging network.
Gold futures for August delivery gained $21.50 or 1.4 percent to close at $1,588.40 an ounce Monday on the NYMEX. The Global Gold Index moved up 1.71 percent.
Among gold stocks, Kinross Gold Corp. (K.TO) gained 2.49 percent, while Barrick Gold Corp. (ABX.TO) moved up 1.49 percent. Goldcorp Inc. (G.TO) gained 3.19 percent.
The Materials Index gained 0.79 percent with Potash Corporation of Saskatchewan Inc. (POT.TO) gaining 2.08 percent and Rubicon Minerals Corp. (RMX.TO) up 1.26 percent.
In economic news, new home sales in the U.S. rose by more than expected in May, the strongest since April of 2010, data from the Commerce Department on showed. Sales of new single-family homes at a seasonally adjusted annual rate was 369,000 in May, a 7.6 percent increase from the revised April rate of 343,000. Economists expected new home sales to climb to 350,000.
by RTT Staff Writer
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