Snapping their four-session winning streak, Canadian stocks were lingering in the red Monday morning as euro zone debt worries resurfaced after comments by European Central Bank spokesperson thrashed speculation that ECB could buy bonds of euro zone countries if borrowing costs rose over certain limits to try and solve the debt crisis.
The S&P/TSX Composite Index shed 49.70 points or 0.41 percent to 12,040.19, after adding over 250 points or just over 2 percent in the past four straight trading sessions.
Oilfields services company Pure Energy Services Ltd. (PSV.TO) jumped nearly 40 percent after it said it would be acquired by FMC Technologies Inc. (FTI) for C$11.00 per share in cash, or nearly C$282 million or $285 million.
Television and film productions company DHX Media Ltd. (DHX.TO) surged 20 percent after announcing it would acquire the business of Cookie Jar Entertainment for about $111 million, to be paid through a combination of approximately 36 million DHX shares, $5 million in cash, and the assumption of $66 million of debt.
Meanwhile, the Diversified Materials Index lost over 1 percent, with First Quantum Minerals (FM.TO) and Teck Resources (TCK_B.TO) shedding around 2 percent each. Inmet Mining (IMN.TO) was down over 1 percent.
The price of crude oil was leveling off from its three-month high Monday morning after the US plans to release emergency oil reserves to control rising gasoline prices faced resistance from the International Energy Agency. Light Sweet Crude Oil (WTI) futures for October delivery, the most actively traded contract, shed $0.39 to $95.93 a barrel.
Suncor Energy (SU.TO) and MEG Energy (MEG.TO) were down around 2 percent each.
Integrated oil company Cenovus Energy (CVE.TO) slipped 0.25 percent after announcing the completion of public offering of $500 million of 10-year senior unsecured notes with a coupon rate of 3 percent and $750 million of 30-year senior unsecured notes with a coupon rate of 4.45 percent in the US.
The price of gold was ticking higher Monday morning even as the U.S. dollar was trading firm amid a recent batch of upbeat economic data, which have dimmed hopes for further stimulus measures from the world's biggest economy. Gold for December edged up $1.00 to $1,620.40 an ounce.
Among gold plays, Detour Gold (DGC.TO), Royal Gold (RGL.TO) and Kinross Gold (K.TO) were down around 1 percent each.
In economic news, euro zone construction output declined for the third consecutive month in June, Eurostat reported. In the construction sector, seasonally adjusted production dropped 0.5 percent from a month ago, when it fell 0.2 percent. Building construction was down 0.1 percent after staying flat in May. Likewise, civil engineering fell by 0.7 percent compared to a 0.5 percent rise in the prior month.
by RTT Staff Writer
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