Stocks take 1% drop
Nov. 26, 2009 (Baystreet.ca) --
Canadian stocks are on a bull run of late, but got off to a difficult start to Thursday's session after Asian shares tumbled and commodity prices turned lower.
The S&P/TSX Composite Index dropped 113.58 points, or 1%, to begin the day's trading at 11,523.32. Yesterday, the Index rose 97.27 points or 0.84% to close at 11,636.90. Miners led the way as gold prices soared to a new record high near $1,200 U.S.
However, gold and other metal prices are pulling back this morning after the dollar retraced some of its losses following a drop to yearly lows versus basket of major counterparts.
The corporate and economic news flow is expected to be slow today.
Oil company EnCana Corp. said its shareholders voted more than 99% in favour of the proposed corporate reorganization to split EnCana into two highly focused energy companies: Cenovus Energy Inc., an integrated oil company and EnCana Corporation, a pure play natural gas company.
In merger news involving a Canadian junior, Ryland Oil Corp. announced it will to acquire Denver-based Eternal Energy Corp. in a deal valued at more than $6 million.
Energy shares may struggle today, with the price of oil dipping toward $77 a barrel in pre-trade
Reports out of Europe said Thursday that Canada's Magna International wants at least 400 million euros ($600 million) from Porsche for canceling a deal where Magna would build the Boxster.
The Canadian dollar fell back 0.81 cents to 94.85 cents U.S.
All but two of the 14 TSX subgroups began the day in negative country. Metals and mining took the biggest hit at 1.7%, materials were off 1.3% and energy stocks slid 1.1%.
The two gainers were health-care stocks, gaining 0.2% and utilities, nosing up 0.03%.
The TSX Venture Exchange gave back 7.80 points to 1,427.35
The price of a barrel of oil lost $1.27 to $76.80 U.S.
U.S. markets are shut down today for Thanksgiving. They will trade in an abbreviated session Friday.
(November 26, 2009 - 10:05 AM EST)
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