Bay Street stocks plunged on Tuesday following the lead of markets in Europe and the U.S. Traders showed concern the global recession is deepening despite recent government efforts.
The S&P/TSX Composite Index declined 299.40 points or 3.45% to move at 8,378.70. Toronto's main index posted its lowest finish since Dec. 24.
Financial stocks lost 6.4%. Scotiabank (BNS.TO) led the big six banks lower with a 7.9% plunge, while National Bank (NA.TO) lost 5.76% and Bank of Montreal (BMO.TO) dropped 5.6%.
IGM Financial (IGM.TO) plunged 5.6% after the company was downgraded to Sell from Neutral by Dundee Securities.
Energy stocks are down 3.8% as crude oil closed below $35 per barrel. Light sweet crude fell to $34.92, down $2.59 for the session.
Suncor (SU.TO) dropped 7%, Vermillion Energy Trust (VET.UN.TO) lost 6.4%, Canadian Oil Sands (CNQ.TO) declined 6% and Encana (ECA.TO) fell 5.2%.
Mining stocks fell 3.5% as industrial metals saw weakness on the Comex.
Teck Cominco (TCK-B.TO) plummeted 9.75% after the company reported a fourth-quarter loss of C$607 million, compared to earnings of C$280 million a year ago.
Hudbay Minerals (HBM.TO) fell 1.7% as reported surfaced Tuesday indicating that Lundin Mining Corp. (LMC) has said the merger with HudBay has likely fallen through.
On the upside, gold stocks surged 5.2% and materials stocks are up 4.6%.
Iamgold (IMG.TO) jumped 12.6%, Yamana (YRI.TO) gained 7.7% and Eldorado (ELD.TO) climbed 6.9%.
In other corporate news, Research In Motion (RIM.TO) fell 5.8% after several executives at the company reached a settlement with the SEC related to charges of backdated employee stock options.
Air Canada (AC.B.TO) plunged 10.3% after Bank of America downgraded the shares to Neutral from Buy following a disappointing earnings report last week.
Meanwhile, Home Capital Group (HCG.TO) surged 11% after the Canadian mortgage lender reported fourth quarter net income of C$29.04 million or C$0.84 per share, up from C$24.23 million or C$0.70 per share in the same period last year.
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