The Toronto stock market was sharply lower Tuesday as global growth concerns pushed commodity prices lower for a second day.
Uncertainty over the level of participation by private creditors in Greece’s planned bond swap also discouraged buyers.
The S&P/TSX Composite Index ended the day down 225.32 points, or 1.8%, to 12,298.63
The Canadian dollar slid 0.66 cents to 99.90 cents U.S.
Strong Chinese growth has been an important prop for a global economy still struggling to recover from the 2008 financial crisis, and that growth has also supported higher commodity prices and rising stock prices on the resource-heavy Toronto stock market.
Other data showed that fourth quarter economic growth in the euro-zone was weak. Gross domestic product dropped 0.3% from the previous quarter, with weakness across all the subcomponents.
Copper was among the biggest commodity losers Tuesday, as the May contract on the New York Mercantile Exchange lost 12 cents to $3.74 U.S. a pound on top of a four-cent loss Monday amid demand concerns. China is the biggest consumer of the metal, widely viewed as an economic barometer because it is used in so many businesses.
The base metals sector backed off as Teck Resources fell 80 cents to $35.40 and First Quantum Minerals lost $1.50, or 6.8%, to $20.45.
The energy sector lost strength as Canadian Natural Resources dropped 36 cents to $35.25 and Suncor Energy was down $1.43, or 4.1%, to $33.38.
The gold sector fell and Barrick Gold Corp. shed 61 cents to $45.77 and Goldcorp Inc. faded 68 cents to $46.97.
The financials sector was down amid a strong earnings report from Scotiabank. The bank’s quarterly profits rose to $1.44 billion, or $1.20 per share, up from $1.25 billion or $1.08 per share a year ago. Revenue grew to $4.64 billion from $4.19 billion. Scotiabank also upped its dividend by three cents a share to 55 cents but its shares slipped 75 cents to $52.96.
Research in Motion Ltd. continued to lose ground, down 13 cents to $13.12 after Northern Securities analyst Sameet Kanadehas lowered his 12-month target on the stock to $7 from $24 and downgraded his recommendation to sell from speculative buy. He said the company’s "cash cow" services business is heading for a decline thanks to market share gains by rivals including Apple Inc.
Its shares were also under pressure late last week after Jefferies & Co. cut its earnings estimate and said there was a greater than 50% chance that the BlackBerry maker will miss its device sales forecast for the fiscal fourth quarter, which ended in February.
In other earnings news, Uranium One Inc. improved its fourth-quarter results in 2011 helped by the absence of a series of one-time items booked a year earlier. The company, one of the world’s largest publicly traded uranium producers, posted a $1.1-million loss in the fourth quarter, or nil per share, compared to a $112.9 million loss a year ago. Revenue grew to $157.9 million from $152.3 million and its shares lost six cents to $3.00.
Shares in telecom equipment supplier software company DragonWave Inc. fell 32 cents, or 7.6%, to $3.90 after it said its revenue in the just-ended fourth quarter was below the company’s expectations due to delays in shipments to customers in various regions. The new revenue estimate is $9.4 million U.S.
Heavy equipment, industrial component and power system provider Wajax Corp. was one of the few positive stocks. Its shares gained $1.74 or 4% to $45.83 as it raised its monthly dividend by 35% to 27 cents a share.
It also reported a fourth-quarter profit of $16.6 million or $1 per share, up from a year-earlier $15.8 million or 95 cents per share.
ON BAYSTREET
The TSX Venture Exchange plummeted 50.93 points to 1,604.87, while the Nasdaq Canada index dipped 10.63 points to 402.80
All but one of the 14 Toronto subgroups took a pounding on the day, metals and mining stocks taking the worst beating at 3.9%, their cousins in global base metals suffering 2.8%, while energy stocks slid 2.7%.
Only consumer staples managed to forge out any kind of gain, up 0.2%.
ON WALLSTREET
In New York, investors were taking a giant step back Tuesday but stocks have had a pretty strong year so far so the retreat isn't ringing any alarm bells.
The Dow Jones Industrials fell 203.66 points, or 1.6%, to end a brutal session at 12,799.20.
That was the big board's worst day since Dec. 8, when it fell 1.6%. Today also marks the first time the Dow has suffered a triple-digit loss in 45 days.
Financial stocks were among the hardest hit, with Bank of America and JPMorgan Chase both down about 3%. The only Dow component showing a modest gain was Kraft
The S&P 500 listed lower 20.96 points to 1,343.37, while the Nasdaq tumbled 40.16 points to 2,910.32
Since the start of the year, stocks have slowly and steadily made their way toward their highest levels since 2008, helped along by the U.S. economy's steady improvement.
While March has not been a good month so far, the Dow is still up 4.4% for the year. The S&P 500 has gained nearly 7% and the Nasdaq is up 11.7% year to date.
Shares of Chesapeake Energy fell after the company announced a partnership with KKR to invest in mineral interests and royalties in key domestic oil and gas basins.
Online jobs search firm Monster Worldwide's shares spiked after the company announced it had retained Stone Key Partners and BofA Merrill Lynch to review "strategic alternatives."
While the company did not reveal its specific plans, hiring bankers to pursue alternatives often means a potential sale or spinoff.
Dick's Sporting Goods reported quarterly earnings of 88 cents a share on $1.6 billion U.S. in revenue, matching analysts' estimates.
Shares of weight-loss company Nutrisystem plunged 10% after the company said late Monday it expects earnings and sales growth to be below analysts' forecasts this year.
Shuffle Master, a gaming supplier, announced plans Monday to acquire online poker company Ongame Network. The Las Vegas-based company also reported strong earnings and sales growth for the first quarter.
Investors will be on edge leading up to a big news day on Friday, when the February jobs report will be released. Also coming later this week are reports on consumer credit, productivity and the U.S. trade balance.
Treasury prices for the 10-year note hiked, lowering yields to 1.94% from Monday’s 2.00%. Treasury prices and yields move in opposite directions.
Oil for February delivery ditched $1.94 to $104.74 U.S. a barrel.
Gold futures for April delivery fell $35.40 to $1,668.80 U.S. an ounce.
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