TSX hits four-week low but BlackBerry soars on takeover report
By John Tilak and Rod Nickel
TORONTO/WINNIPEG (Reuters) - Canada's main stock index dropped to its lowest in four weeks on Wednesday after the World Bank cut its global growth forecasts, but BlackBerry Ltd (BB.TO: Quote) jumped after a report said Samsung Electronics Co had approached it about a takeover.
Samsung (005930.KS: Quote) recently talked to BlackBerry about buying the smartphone maker for as much as $7.5 billion, looking to gain access to its patent portfolio, according to a person familiar with the matter and documents seen by Reuters. BlackBerry shares shot up nearly 30 percent.
The World Bank said it had lowered its economic growth projections for this year and next due to disappointing prospects in the euro zone, Japan and some major emerging economies.
Some mining shares were also hit hard by a dive in copper prices. First Quantum Minerals Ltd (FM.TO: Quote) shed 13.1 percent to C$11.70 and Teck Resources Ltd TCKb.TO tumbled 6.5 percent to C$13.71. The two stocks were among the most influential decliners on the index.
The Toronto stock market's benchmark TSX index has fallen in each of the last four sessions and is down nearly 4 percent since the start of the year.
“I have never been more bearish on Canada than I am today,” said Sadiq Adatia, chief investment officer at Sun Life Global Investments. “Real estate, high debt levels, now you've got oil prices (falling). Oil prices will impact both real estate and job levels going forward, plus it will impact the government in terms of revenue.”
Adatia said, however, he sees opportunities in the energy sector. “We don’t think we’re at the bottom by any means, but we do think the entry points are starting to look more attractive.”
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 102.73 points, or 0.72 percent, at 14,084.43. During the session it fell as low as 13,892. Seven of the 10 main sectors on the index were in the red. Continued...