Canadian stocks settled lower Monday, mostly on profit taking with resource stocks leading the decline after the euphoria brought on by the Federal Reserve's quantitative easing measures dissipated. Most sectors of the S&P/TSX index were in the red, with little cues to move ahead. The Index made smart gains last week as the Federal Reserve embarked on a third round of quantitative easing, while promising to keep interest at rock-bottom rates until mid-2015.
The S&P/TSX Composite Index closed Monday at 12,446.86, down 52.61 points or 0.42 percent. The index touched an intraday high of 12,508.71 and a low of 12,432.37.
The Metals & Mining Index plunged 3.78 percent, with Teck Resources Limited (TCK.B.TO) shedding 3.76 percent and First Quantum Minerals Ltd. (FM.TO) plummeting 4.67 percent. Lundin Mining Corp. (LUN.TO) slipped 2.43 percent, while Inmet Mining Corp. (IMN.TO) plunged 6.32 percent.
The Energy Index dropped 0.84 percent, with U.S. crude oil futures for October delivery plunging $2.38 or 2.4 percent to close at $96.62 a barrel Monday on the NYMEX.
Among energy stocks, Suncor Energy Inc. (SU.TO) slipped 0.87 percent, Talisman Energy Inc. (TLM.TO) was down 1.51 percent, Canadian Natural Resources Limited (CNQ.TO) down 1.60 percent, and Encana Corp. (ECA.TO) edged down 1.45 percent.
The Global Gold Index gained a modest 0.19 percent, with gold futures for December delivery shedding $2.1 or 0.1 percent to close at $1,770.60 an ounce Monday on the NYMEX.
The Capped Materials Index fell 0.49 percent, although fertilizer maker Potash Corporation of Saskatchewan Inc. (POT.TO) gained 0.75 percent.
Among gold stocks, Barrick Gold Corp. (ABX.TO) shed 0.22 percent, Goldcorp Inc. (G.TO) edged up 0.42 percent, Yamana Gold Inc. (YRI.TO) moved up 0.82 percent, Eldorado Gold Corp. (ELD.TO) rose 1.50 percent, and Kinross Gold (K.TO) shed 0.50 percent.
The Financial Index slipped 0.29 percent, with Manulife Financial Corp. (MFC.TO) down 2.85 percent. Royal Bank of Canada (RY.TO) edged down 0.05 percent, Bank of Nova Scotia (BNS.TO) edged up 0.17 percent, and Toronto-Dominion Bank (TD.TO) surrendered 0.17 percent.
Transportation systems maker Bombardier Inc. (BBD.A.TO, BBD.B.TO) shed 1.32 percent.
The Information Technology Index dropped 1.07 percent, with smartphone maker Research In Motion Limited (RIM.TO) giving up 3.68 percent after news reports that Yahoo! has decided to drop Blackberry smartphones for its employees while including other smartphones instead.
Hardware retailer RONA (RON.TO) lost 11.59 percent after Lowe's Companies Inc. (LOW) formally withdrew its $1.80 billion acquisition proposal.
Biopharmaceutical company Cangene Corp. (CNJ.TO ) rose 5.70 percent after announcing that its wholly owned subsidiary, Cangene Plasma Resources, Inc. would sell three of its U.S. based plasma centers to Spanish company, Grifols.
In economic news, Statistics Canada said non-resident investors acquired $6.7 billion of Canadian securities in July, following a $7.8 billion divestment in June. Meanwhile, Canadian investment in foreign securities strengthened to $4.6 billion and was equally split between debt and equity securities.
In economic news from the U.S., the Federal Reserve Bank of New York said its general business conditions index dropped to a negative 10.41 in September from a negative 5.85 in August, with a negative reading indicating a contraction in regional manufacturing activity. Economists expected the index to a negative 2.0.
Elsewhere, the eurozone trade surplus rose to 15.6 billion euro in July from 13.6 billion euro in June, Eurostat said. In July 2011, the trade surplus totaled 2.1 billion euro. Exports dropped 2 percent month-on-month in July after rising 2.4 percent in June. Likewise, imports fell 1.2 percent, reversing last month's 0.7 percent rise.
by RTT Staff Writer
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