TSX battered in global rout, slumps most since late 2011

Mon Aug 24, 2015 5:11pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index was battered on Monday, swept along by the global market rout that saw a nearly 9 percent plunge in Chinese stocks and sent commodity prices tumbling.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE lost 420.93 points, or 3.12 percent, to close at 13,052.74, its steepest daily loss since late 2011.

Just seven stocks gained, while 240 fell, with 124 of them hitting fresh 52-week lows.

The index has lost more than 1,000 points since early last week, as a string of lackluster data out of China, one of the world's biggest economies and commodities consumers, have ignited worries the country will spur a global economic slowdown.

Shortly after the open it suffered its biggest intraday loss since 2009, falling 768.50 points, or 5.7 percent to 12,705.17.

Michael Sprung, president at Sprung Investment Management Inc, said the plunge could offer an attractive entry point, but only for those with a strong stomach and a long-term outlook.

"We wouldn't recommend anybody rush in and just buy, buy, buy, but if you've been watching the market for some time here and looking for some particular stocks...this is the beginning of the opportunity," he said.

Chinese stocks tanked on Monday when Beijing failed to intervene over the weekend as some had hoped, triggering panic selling around the globe.   Continued...

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