Canadian stocks ended sharply lower Tuesday, tracking a broad decline in global equity markets led by resource stocks even as commodity prices dropped. Investors continued to worry the U.S. Federal Reserve may scale back its aggressive monetary policies, after the Bank of Japan earlier today opted not to expand its stimulus program with any fresh measures.
The Bank of Japan refrained from announcing any new steps to contain bond market volatility, with policymakers deciding to continue targeting an expansion of monetary base at an annual pace of 60 to 70 trillion yen, as announced in April. The central bank also upgraded its outlook on the economy.
The S&P/TSX Composite Index closed Tuesday at 12,223.57, down 159.10 points or 1.28 percent. The index touched an intraday high of 12,375.81 and a low of 12,217.73.
The Global Gold Index plunged 3.77 percent, with gold futures for August delivery dropping $9.00 or 0.7 percent to close at $1,377.00 an ounce Tuesday on the Nymex.
The Capped Materials Index dived 3.01 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) down 1.80 percent.
Among gold stocks, Yamana Gold Inc. (YRI.TO) plunging 5.46 percent, while Goldcorp Inc. (G.TO) surrendered 2.47 percent. IAMGOLD Corp. (IMG.TO) lost 3.66 percent, while Barrick Gold Corp. (ABX.TO) dived 3.84 percent. Kinross Gold Corp. (K.TO) plummeted 6.06 percent.
The Diversified Metals & Mining Index surrendered 2.60 percent, with First Quantum Minerals Ltd. (FM.TO) down 3.61 percent, Osisko Mining Corp. (OSK.TO) plunging 5.03 percent, and Lundin Mining Corp. (LUN.TO) down 1.95 percent. Teck Resources Limited (TCK_B.TO) lost 1.12 percent.
The Energy Index shed 1.53 percent, with U.S. crude oil futures for July delivery down $0.39 or 0.4 percent to close at $95.38 a barrel Tuesday on the Nymex.
Encana Corp. (ECA.TO) named Doug Suttles as President & Chief Executive and a director of the company. Suttles, with 30 years of oil and gas leadership experience, has served most recently as Chief Operating Officer of BP Exploration & Production. The stock edged up 0.50 percent.
Among other energy stocks, Suncor Energy Inc. (SU.TO) edged down 2.30 percent, while Canadian Natural Resources Limited (CNQ.TO) was down 0.97 percent. Enbridge Inc. (ENB.TO) lost 0.76 percent, while Talisman Energy Inc. (TLM.TO) gave up 1.34 percent.
The Financial Index slipped 0.94 percent with Manulife Financial Corp. (MFC.TO) down 0.68 percent, National Bank of Canada (NA.TO) slipped 0.72 percent, Bank of Nova Scotia (BNS.TO) shed 0.91 percent, and Bank of Montreal (BMO.TO) down 1.95 percent. Royal Bank of Canada (RY.TO) surrendered 1.65 percent.
The Information Technology Index lost 2.04 percent, with BlackBerry (BB.TO) down 2.25 percent.
The Capped Industrials Index slipped 0.63 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) down 0.63 percent.
Yoga-wear maker lululemon athletica inc. (LLL.TO) dived 17.62 percent after reporting a marginally higher first quarter net income of $47.3 million or $0.32 per share compared to $46.6 million or $0.32 per share for the year-ago quarter. Analysts expected the company to earn $0.32 per share for the first quarter. Looking forward to the second quarter, the company has forecast net revenue of $340 million to $345 million and earnings of $0.33 to $0.35 per share. Analysts currently expect the company to earn $0.33 per share on revenue of $328.88 million for the second quarter. Additionally, lululemon said its Chief Executive Officer Christine Day will step down after a five and half year tenure.
Commercial real estate owner, operator and investor Brookfield Property Partners, L.P. (BPY_UN.TO) edged up 0.40 percent after announcing the acquisition of EZW Gazeley Ltd from Economic Zones World, part of Dubai World. Pursuant to the acquisition, Brookfield Property Partners will own an approximate 30 percent interest in Gazeley.
Health insurer Cigna Corp. (CI) entered into a ten-year deal with pharmacy benefit manager Catamaran Corp. (CTRX, CCT.TO). Yesterday, shares of Catamaran gained 14 percent in extended trades following the announcement. Today, the stock was adding another 12 percent.
In economic news from the U.S., the Commerce Department said wholesale inventories edged up by 0.2 percent in April following a revised 0.3 percent increase in March. The modest growth matched economist estimates. Inventories of durable goods increased by 0.2 percent, with a 1.9 percent jump in inventories of motor vehicles and parts offsetting a 1.1 percent drop in inventories of metals and minerals, except petroleum.
Elsewhere, U.K. industrial production registered a slight 0.1 percent increase in April from March, data published by the Office for National Statistics showed. April's increase follows a 0.7 percent rise in March and 0.9 percent growth in February. Economists had forecast nil growth for April.
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