TSX falls to a more than two-year low on weak resource stocks
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index fell to its lowest in more than two years on Monday, notching deep losses for mining stocks while energy shares weakened despite crude oil prices rebounding from near-11-year lows.
The materials group tumbled just less than 5 percent, while energy stocks retreated 1.7 percent.
The two resource-related groups, which together account for more than a quarter of the index's weight, have been its worst performers this year as oil and other commodity prices slumped.
The big picture for the market is that the commodities cycle peaked about four years ago and is "now heading toward the trough area," according to Keith G. Richards, portfolio manager and technical analyst at ValueTrend Wealth Management.
Goldcorp Inc (G.TO: Quote) fell 7.7 percent to C$15.24, while Barrick Gold Corp (ABX.TO: Quote) was down 8.9 percent at C$9.69 and fertilizer producer Potash Corp (POT.TO: Quote) lost 3.4 percent to C$23.02.
Encana Corp (ECA.TO: Quote) fell 8.2 percent to C$7.63 after the oil and natural gas producer slashed its dividend and cut its 2016 capital budget. Suncor Energy Inc (SU.TO: Quote) declined 1.9 percent to C$34.55.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE fell 94.46 points, or 0.74 percent, to 12,695.49, having touched its lowest level since August 2013.
Seven of the index's 10 main groups ended the day in negative territory. Continued...