The Toronto stock market was lower for a third session Wednesday, dragged down by mining stocks amid concerns that high oil prices due to unrest in Libya may slow the global economy and reduce demand for industrial metals.
The S&P/TSX composite index jettisoned 128.26 points by the end of the day to 13,884.71
The Canadian dollar gained 0.30 cents to 103.23 cents U.S, after earlier in the day rising as high as 103.44 cents U.S., its highest level since November 2007.
The energy sector was lower Talisman Energy was down 50 cents at $22.84 while Suncor Energy declined 59 cents to $43.08.
Oil prices had eased Tuesday after OPEC members said they were in informal talks over raising output to compensate for lost production in Libya. Under normal circumstances, Libya produces almost 2% of the world’s supply.
Investors are particularly worried that the violent rebellion against Libyan leader Moammar Gadhafi may spread to other producers in the region, especially oil powerhouse Saudi Arabia. Crude oil has surged about 18% since Feb. 18.
But analysts say oil prices might have topped for the time being amid OPEC’s reassurances about making up for lost supply.
The base metals sector was down substantially while the May copper contract lost 13 cents to $4.21 U.S. a pound. Copper prices have fallen sharply on demand concerns, down over 6% since Feb. 18.
Equinox Minerals lost 31 cents to $5.16.
Teck Resources Ltd. was down $1.84 to $50.89. The company said Tuesday that it has signed a deal to sell its interest in the Carrapateena Project in Australia to an affiliate of OZ Minerals Ltd.
Teck expects to receive $134 million U.S. in cash and have the right to up to an additional $25 million U.S. depending on certain specified events related to production from the Carrapateena property.
Gold stocks also fell back as Barrick Gold Corp. faded 83 cents to $49.97 and Goldcorp Inc. shed 79 cents to $47.10.
In corporate news, four of Canada’s banks are reportedly preparing to publicly criticize the planned merger of the Toronto and London stock exchanges. Sources say that the four banks plan to lay out their concerns in a public letter later this week.
Unidentified sources said the effort is being co-ordinated by TD Bank with support from Bank of Nova Scotia CIBC and National Bank Shares in Toronto market operator TMX Group were down 74 cents at $39.14.
Aecon Group Inc., one of Canada’s largest publicly traded construction companies, reported fourth-quarter net income of $8.9 million or 16 cents per diluted share, down from $15.4 million or 26 cents in the same 2009 quarter. Revenue was $838 million, up from $600 million in the prior-year quarter and its shares rose 53 cents to $9.37.
Shares in broadband technology company Sandvine tumbled 65 cents or 21.2% to $2.41 after it said that it expects its first-quarter revenue to be in the range of $18 million to $19 million U.S.
Average analyst estimates compiled by Thomson Reuters are for revenue of $26 million U.S. for the company, which reports its full financial results in April.
On the economic ledger, Statistics Canada said this morning that its New Housing Price Index rose 0.2% in January following a 0.1% advance in December, thanks largely to price boosts in prices in Toronto and Oshawa, as well as Montréal.
ON BAYSTREET
The TSX Venture Exchange collapsed 59.28 points to 2,326.46, while the Nasdaq Canada index deducted 4.53 points to 808.79
In Toronto, all but three of the 14 subgroups were lower on the day. Metals and mining turned 3.1% lower, global base metals dropped 2.6%, and materials were off 2.2%.
The three gainers were health-care, up 1%, consumer staples, picking up 0.3%, and consumer discretionaries, advancing 0.2%.
ON WALLSTREET
In New York, stocks seesawed Wednesday, as investors continue to monitor developments in Libya and oil prices.
The Dow Jones industrial average fell 1.29 into the red by the closing to 12,213.10
The S&P 500 slid 1.80 points to 1,320.02. The tech-rich Nasdaq index gave back 14.05 points to 2,751.72
IBM helped lift the Dow. Shares climbed nearly 3% after Deutsche Bank analysts upgraded their price target on Big Blue to $200 U.S. a share and maintained a "buy" rating on the stock.
In the broader market, oil continues to be front and centre. Crude prices have been surging for weeks, and there's been little on the domestic front to help give stocks a sustained boost.
The biggest loser on the S&P 500 Wednesday afternoon was widely held JDS Uniphase, with shares of the optical networking equipment maker plunging 14%. The entire sector got hammered after rival Finisar issued a weak outlook Tuesday, citing weak demand out of China. Shares of Finisar sank 37% Wednesday.
Ciena dropped 4% and Brocade Communications' stock shed 1%.
After the close, Hot Topic and Coldwater Creek will release their earnings.
On the economic front, the Commerce Department said wholesale inventories rose 1.1% in January, slightly better than the 1% rise economists had expected, according to a consensus estimate from Briefing.com.
The price on the benchmark 10-year U.S. Treasury gained some territory, pushing the yield down to 3.47% from Tuesday’s 3.54%. Treasury prices and yields move in opposite directions.
Oil for February delivery slid $1.08 to $103.94 U.S. a barrel.
Gold futures for April delivery closed up $2.40 to $1,429.60 U.S. an ounce.
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