TSX tumbles on broad selloff, resource stocks weigh

Mon Jun 8, 2015 4:42pm EDT
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index tumbled 1.4 percent on Monday, its third straight fall and the sharpest selloff in almost three months, with across-the-board declines led by resource and financial stocks.

While investors took cues from global markets, the impact was magnified in Canada's skittish market, which is particularly attuned to both Chinese demand for its commodity exports and economic recovery in the United States, its main trade partner.

"The economic news has been ugly and a bit discouraging in some ways and yet there was good economic numbers on Friday and the market doesn't like them," said John Kinsey, portfolio manager at Caldwell Securities.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE lost 213.83 points, or 1.43 percent, in the session to end at 14,743.33.

U.S. and European stocks also declined as investors fretted about Greece and the timing of a U.S. rate hike, while bond yields rose and the dollar fell. [MKTS/GLOB]

Energy stocks slumped 2.4 percent as crude prices, pinched by a slide in Chinese fuel imports and OPEC's decision to keep its production target, fell one percent or more. [O/R]

Enbridge Inc (ENB.TO: Quote) was the top-weighted decliner, falling 3.6 percent to C$56.28. Suncor Energy Inc (SU.TO: Quote) was another top 10 loser, declining 2.6 percent to C$35.06.

"China is hurting the markets because of the weakness in some of the numbers. Some of the European numbers now are beginning to show a little bit of encouragement," Kinsey said.   Continued...

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014.  REUTERS/Mark Blinch