The Toronto stock market backed off Monday as commodity prices continued to decline while investors tried to assess the economic impact of Friday’s catastrophic earthquake and tsunami in Japan.
The S&P/TSX composite index improved off its lows for the day, but still lost 55.06 points to end the session at 13,619.19
The Canadian dollar recovered 0.07 of a cent to 102.8 cents U.S.
Crude oil prices declined on the feeling that the disaster, which has killed an estimated 10,000 Japanese, has more or less frozen the world’s third-largest economy.
The energy sector was down as Suncor Energy lost 25 cents to $42.05 and Canadian Natural Resources was down a dime at $45.05.
Three of Japan’s five largest refineries have been shut down, which will immediately crimp demand for crude. Japan is the world’s third-largest crude consumer at 4.5 million barrels a day, the second-largest net oil importer and the biggest importer of liquefied natural gas and coal.
Stocks in uranium miners tumbled after the second hydrogen explosion in three days rocked a Japanese nuclear plant Monday. Water levels dropped precipitously at another reactor, completely exposing the fuel rods and raising the threat of a meltdown.
Also, the Swiss government on Monday abruptly suspended plans to build and replace nuclear plants as the explosions spread worries about atomic energy safety in Europe.
Cameco Corp. dropped $4.62 or 12.7% to $31.70, Uranium One fell $1.65 or 27.7% to $4.31 while Paladin Energy lost 99 cents or 21.2% to $3.67.
The base metals sector lost ground as demand concerns continued to push copper prices lower with the May contract down two cents at $4.19 U.S. a pound. Teck Resources fell $1.37 to $49.56 while Equinox Minerals declined 37 cents to $4.84.
The gold sector was negative as Kinross Gold Corp. faded 14 cents to $14.80 while Goldcorp Inc. improved by 24 cents to $46.36.
Financials were also lower with insurers taking the biggest hit. Manulife Financial was down 61 cents at $16.74 while Sun Life Financial was down 14 cents at $30.16.
On the economic front, Statistics Canada reports that industries in this country operated at 76.4% of their production capacity in the fourth quarter. That is up slightly from 76.2% in the third quarter.
The agency noted that this was the sixth consecutive quarterly increase in the capacity utilization rate, although the pace of growth slowed progressively in 2010.
ON BAYSTREET
The TSX Venture Exchange collapsed 73.65 points at 2,193.07, while the Nasdaq Canada index erased 11.48 points to 777.20
In Toronto, all but three of 14 subgroups were down on the day. Metals and mining stocks weighed most heavily, losing 1.9%, global base metals were off 1.1% and materials slid 0.8%.
The three gainers were consumer discretionaries, up 0.8%, consumer staples, ahead 0.2%, and real-estate, inching ahead 0.04%.
ON WALLSTREET
In New York, stocks came off session lows but remained under pressure Monday afternoon, after Japan's leading stock index plunged in reaction to last week's massive earthquake and tsunami.
The Dow Jones industrial average shrank 51.24 points to 11,993.20. The decline was led by a 3% slide in shares of General Electric, following news that the company designed all six of the reactors at the Fukushima Daiichi nuclear plant in Japan.
The S & P 500 was down 7.89 points to 1,296.39, as shares of luxury retailers Coach and Tiffany & Co -- which have been building their presence in Japan -- slid about 6%. Nuclear power plant operator Entergy was also a big loser, dropping 5.6%
The tech-rich Nasdaq Composite Index shed 14.64 points to 2,700.97.
Early Monday, Warren Buffett's Berkshire Hathaway said it would acquire Lubrizol for $135 U.S. per share in an all-cash transaction. That's a 28% premium over Lubrizol's closing price Friday.
The deal, valued at approximately $9.7 billion U.S., is one of Berkshire's biggest acquisitions ever.
Shares of Berkshire edged about 1.6% lower, while Lubrizol's stock jumped 27%.
U.S.-traded shares of some companies based in Japan were down sharply in early trading Monday.
Shares of Canon, based in Tokyo, were down 4.6%. Toyota shares were off 4.9%, while Sony was down 7.4%.
Stateside insurance companies, including Hartford Financial Services Group and Aflac -- which generates almost 75% of its revenue in Japan, also took a big hit. Shares of both insurers were down 3%.
Japanese officials said Monday they will backstop the country's financial system, with a cash injection of more than $60 billion U.S. to buffer it against the impact of the earthquake and tsunami.
No market-moving economic reports are scheduled to be released Monday.
The price on the benchmark 10-year U.S. Treasury had some lift, bringing yields down to 3.35% from Friday’s 3.39%. Treasury prices and yields move in opposite directions.
Oil for February delivery recovered 24 cents to $101.40 U.S. a barrel.
Gold futures for April delivery rose $3.10 to settle at $1,424.90 U.S. an ounce.
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