The Toronto stock market dipped into the red again Friday, the third in a string of selloff days that have seen investors flee the vulnerability of equities as the world grapples with the real possibility of another recession.
The S&P/TSX Composite closed down 99.64 points to end a bruising week at 11,462.87, leaving the main index 20% below its highs of early March and officially in what traders call a "bear" market.
And there are worries that losses could get worse. Sombre predictions about flagging growth in the world’s largest economy and the possibility of a painful outcome to the European debt crisis have spooked many into seeking a safe haven for their money.
The Canadian dollar was up 0.08 of a cent to 97.14 cents U.S., after investors bailed out of anything remotely risky and piled into U.S. Treasury bonds.
In the energy sector, Canadian Natural Resources fell 67 cents to $30.23 while Cenovus Energy was ahead 70 cents to $31.24.
The base metals component fell as copper prices, often used as a barometer of global economic health, continued to fall with the December contract on the Nymex tumbling 15 cents to $3.34 U.S. after earlier hitting a fresh 52-week low of $3.21 U.S. Teck Resources gave back $1.02 to $30.73 and First Quantum Minerals lost $1.08 to $13.71.
The gold sector backed off as Barrick Gold Corp. fell $2.46 to $47.73 and Goldcorp Inc. was down $2.15 to $46.95.
Financials were supportive on the TSX. Royal Bank was up 73 cents to $46.09 and Scotiabank climbed 73 cents to $50.73.
The TSX also found support from the industrials sector where Canadian Pacific Railway rose $2.37 to $48.59, while Bombardier Inc. gained four cents to $4.03.
A pop in the tech sector lifted Research In Motion Ltd. 13 cents to $22.30.
In corporate news, U.S. retailer Target laid down more groundwork Friday for its entry into Canada in 2013 with additional store locations and a supply deal with Sobeys. Under the Sobeys deal, the Canadian grocer will supply Target with frozen, dairy, and dry grocery products, including both national brands and Target’s private-label products starting early in 2013.
Sobey’s parent Empire’s shares dipped 59 cents to $55.50.
Silvercorp Metals Inc. has filed a lawsuit in New York against several short-sellers for spreading "false, defamatory and fraudulent" information about the Canadian mining company. Its shares fell 14 cents to $6.91.
ON BAYSTREET
The TSX Venture Exchange fell another 52.16 to 1,546.08, while the Nasdaq Canada index slid 3.19 points to 429.86
Nine of the 14 Toronto subgroups were positive on the day. Health-care issues picked up 2.1%, , industrials were up 1.9% and consumer discretionaries up 1.4%.
The five laggards were weighed mostly by gold, off 5%, materials, down 4.4%, and the metals and mining group, sliding 2.5%.
ON WALLSTREET
In New York, stocks edged higher Friday afternoon, as investors tried to recover from Thursday's 3% plummet. But the gains were limited as traders remained cautious amid worries about the global economy and Europe's debt crisis.
The Dow Jones Industrials fought their way into positive territory by 37.65 points to close the day and the week at 10,771.50
The S&P 500 also moved up 6.87 points to 1,136.43, while the Nasdaq grew 27.56 points to 2,483.23, with Yahoo among the strongest performers.
Despite Friday's relative calm on Wall Street, this week has been brutal for stocks, with investors losing faith in economies and political leaders around the world. The Dow is down almost 7% since Monday, on track for its worst weekly performance since October 2008.
Shares of Hewlett-Packard edged lower a day after the company's board ousted CEO Leo Apotheker after just 11 months.
Shares of Morgan Stanley and Citigroup, which have been hit hard over the last few days due to concerns about U.S. exposure to Greek debt, posted gains.
Bank of America's stock also moved higher. Even the slightest decline would put BofA shares in the $5 U.S. range, a level not seen since March 2009.
Shares of KB Home popped after the homebuilder reported a narrower-than-expected loss for the third quarter.
G-20 finance ministers attempted to inject some confidence with a commitment to "a strong and coordinated international response to address the renewed challenges facing the global economy," highlighting the European debt crisis.
Gathering at the annual International Monetary Fund and World Bank meetings in Washington D.C., the group said that by its next meeting in October, the euro-zone will have implemented actions to expand the bailout fund for Europe's debt-laden countries "to maximize its impact in order to address contagion."
The price on the benchmark 10-year U.S. Treasury fell slightly, pushing the yield up to 1.81% from 1.72% late Thursday. Earlier Friday, the benchmark yield hit a fresh record low of 1.671% Treasury prices and yields move in opposite directions.
Oil for October delivery fell 28 cents to $80.23 U.S. a barrel.
Gold futures for December delivery lost $97 to $1,644.70 U.S. an ounce.
Related Stories
