The Toronto stock market registered a triple-digit plunge Monday afternoon, led by another sizable loss in energy stocks amid a report from investment bank Goldman Sachs that forecast further big declines in oil prices.
The S&P/TSX composite index plummeted 119.91 points, to conclude the day’s trading at 14,265.01.
The Canadian dollar faded 0.73 cents to 83.58 cents U.S.
Oil prices have collapsed since June 2014, falling more than 55%. They have dropped more than 33% just since the end of November, when Saudi Arabia made it clear it would not cut production to support prices.
Meanwhile, another major energy player is responding to the collapse in oil prices with lower capital spending plans. Canadian Natural Resources is reducing its 2015 capital spending plan by nearly 30% and now plans to spend $6.19 billion in 2015, or $2.4 billion less than expected in November. Canadian Natural dropped $1.46, or 4.4%, to $31.71.
Elsewhere on the TSX, the base metals group was down while lower demand prospects sent copper to a four-and-a-half-year low with the March contract three cents lower at $2.73 a pound. Teck Resources dropped 64 cents, or 4%, to $15.53.
Among industrials Bombardier gained one cent to $3.93. Among financials, RBC dipped 91 cents, or 1.2%, to $76.57.
Gold was the most positive sector, as Barrick Gold surged 53 cents, or 4.1%, to $13.57.
On the corporate front, Guelph, Ont.-based Linamar Corp. plans to create 1,200 jobs as the company launches a $500-million expansion, financed in part by the Ontario and federal governments. Linamar shares gained 32 cents to $69.12.
Shares in Tekmira Pharmacheuticals jumped $10.59, or 56.2%, to $29.42, after the Vancouver-based company announced a friendly merger proposal with OnCore Biopharma Inc., a U.S. drug developer working on complementary products for treating Hepatitis B.
ON BAYSTREET
The TSX Venture Exchange lost 7.22 points to 679.99
All but four of the 14 Toronto subgroups were down on the day, notably energy, down 4.8%, while metals and mining slid 4.1%, and global base metals were off 1.6%.
The four gainers were led by gold, surging 4.9%, materials moved higher 1.8%, and telecoms improved 0.3%.
ON WALLSTREET
U.S. stocks declined on Monday, erasing opening gains, as worries about the falling price of oil took hold before the start of quarterly earnings.
The Dow Jones Industrials tumbled 96.53 points to 17,640.84.
The S&P 500 subtracted 16.55 points to 2,028.26
The NASDAQ index plummeted 39.36 points to 4,664.71.
Oilfield-services provider Schlumberger declined after Goldman Sachs Group downgraded its shares to neutral from buy, while also cutting its outlook for benchmark oil prices.
Bristol-Myers Squibb jumped after the drug developer reported upbeat results on a potential treatment for a common form of lung cancer.
Lululemon Athletica rose after the maker of yoga clothes hiked its outlook for fourth-quarter revenue and profit.
SanDisk dropped after the supplier of memory chips for Apple's phones projected lower quarterly revenue than previously forecast. Tiffany tumbled after the upscale jeweler cut its full-year earnings outlook.
NPS Pharmaceuticals surged after Shire said it would pay about $5.2 billion U.S. to purchase the developer of medicines to treat rare disease.
Roche Holding said it would pay billions for a majority stake in genomic-test maker Foundation Medicine.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 1.91% from Friday’s 1.97%. Treasury prices and yields move in opposite directions.
Oil prices stumbled $2.44 per barrel to $45.92 U.S.
Gold prices added $18.80 an ounce at $1,234.90 U.S.
