The Toronto Stock Exchange sank Wednesday as commodity prices lost ground amid negative investor sentiment.
The S&P/TSX composite index fell 26.57 points to approach noon Wednesday at 12,230.61, off its lows for the morning
The Canadian dollar fell 0.34 cents Wednesday to 101.65 cents U.S.
Onex Corp. is leading a $718-million deal to acquire a 4,000-employee German manufacturing company, the first European investment for the Toronto-based company’s flagship private equity fund. Onex shares fell 14 cents to $37.93.
The main U.S. subsidiary of CGI Group has received a five-year contract worth up to $871 million U.S. from the Defense Information Systems Agency. CGI Federal Inc. will deliver a range of technology and business services, including engineering, scientific, testing, and logistics. Shares dropped 25 cents to $26.58.
Investment manager AGF Management Ltd. said Wednesday it lost $13.3 million or 14 cents per share in the quarter ended Aug. 31 compared with a profit of $15.4 million or 16 cents per share a year ago. Revenue totalled $119.8 million, down from $151.4 million.
Shares fell 7.8%, or 97 cents, to $11.46.
And shares of Research In Motion Ltd. gained 4.3%, or 28 cents, to $6.78 on positive momentum from Tuesday when the company gave an update on the new BlackBerry 10 prototype and ahead of its quarterly earnings to be released Thursday.
In economic news, the Conference Board of Canada said consumer confidence showed improvement this month, following a weak showing in August. The Ottawa-based economic forecaster says its Index of Consumer Confidence increased 6.7 points to 82.2.
ON BAYSTREET
The TSX Venture Exchange faded 16.92 points to 1,296.29
In all, eight of the 14 Toronto subgroups were lower by midday, weighed mostly by industrials, off 0.8%, information technology, down 0.7%, and the metals and mining group, sliding 0.6%.
The half-dozen gainers were led by telecoms, picking up 0.5%, while gold and utilities progressed 0.3% each.
ON WALLSTREET
U.S. stocks declined Wednesday as investors watched unrest in Greece and Spain.
The Dow Jones Industrial average eased 8.90 points, to break for lunch at 13,448.70
The S&P 500 index subtracted 4.99 points, to 1,436.60, and the Nasdaq Composite Index slipped 22.35 points to 3,095.37
Shares of electronic circuit board manufacturer Jabil Circuit dropped more than 9% after the company reported earnings that fell short of expectations.
American Greetings shares jumped after the company said its board of directors received a offer from its CEO and president to take the company private for $17.18 U.S. per share, valuing the company at about $532 million U.S.
Shares of Research in Motion rose after the firm reported its BlackBerry services added close to two million subscribers.
Banco Santander began selling shares of its Mexican unit on the New York Stock Exchange Wednesday. Shares of Grupo Financiero Santander Mexico rose more than 4% on their debut.
Shares of Radio Shack slipped after the company ousted its CEO Jim Gooch. The company named CFO Dorvin Lively as interim CEO.
Thousands of demonstrators took to the streets in Greece in protest of new austerity measures. In Spain, anti-austerity protests in Madrid turned violent ahead of the Spanish government's intended release of its 2013 budget plans.
Yields on 10-year Spanish bonds shot up to 6.02% after the leader of Catalonia -- the country's richest region -- called for early elections, signaling a lack of confidence in Prime Minister Mariano Rajoy. The prime minister is due to speak in New York on Wednesday.
On the economic front, new U.S. home sales decline 0.3% in August to an annual rate of 373,000, according to a report from the U.S. government. Analysts were expecting sales to come in at an annual rate of 380,000.
A separate report showed that mortgage applications increased 2.8% last week compared to the previous one, according to the Mortgage Bankers Association.
The price on the benchmark 10-year U.S. Treasury gained ground, lowering yields to 1.64% from Tuesday’s 1.68%. Treasury prices and yields move in opposite directions.
Oil for November delivery sank $1.95 to $89.41 U.S. a barrel.
Gold futures for December delivery dropped $16 to $1,750.40 U.S. an ounce.
