Commodity stocks led the way to a negative session on the Toronto stock market Monday while traders considered how bank stocks might be affected by moves by Ottawa to curb excessive borrowing for homes.
The S&P/TSX composite index ended the day down 23.95 points to 13,440.11.
The dollar was up 0.225 cents to $1.013 U.S.
The financials sector was down slightly with CIBC off 28 cents at $78.08 while National Bank lost 30 cents to $70.64.
The base metals sector drifted lower. with copper prices down three cents at $4.38 U.S. a pound.
Equinox Minerals declined 10 cents to $5.76 while HudBay Minerals lost 20 cents to $17.03.
The board of Baffinland Iron Mines Corp. announced its support Monday for a joint takeover bid for the company by ArcelorMittal and a private equity fund that values the company at about $590 million.
ArcelorMittal and Nunavut Iron Ore Acquisition had been in a takeover fight for Baffinland, but called a truce Friday with a joint bid. On Monday, Baffinland shares dipped three cents to $1.52.
The energy sector was down as Imperial Oil shed 40 cents to $42.25.
Ivanhoe Energy Inc. has announced a second natural gas discovery in less than a month at its subsidiary Sunwing in southwest China. Its shares headed 25 cents, or 8%, higher to $3.38.
Gold stocks advanced as Goldcorp Inc. gained 21 cents to $40.38 while Barrick Gold Corp. climbed 27 cents to $46.86.
Tech stocks were higher as BlackBerry maker Research In Motion Ltd. promised Indonesia it will meet the country’s request to filter out pornographic content on its smartphones, according to a government spokesman.
RIM made a commitment last week to install the filters after Indonesia threatened to revoke BlackBerry’s license to operate in the country, the most populous Muslim nation. RIM shares climbed 67 cents to $64.85.
Shares of Sun Gro Horticulture Inc. were up $1.40, or 27.3% to $6.52 after IKO Enterprises Ltd. announced it plans to buy the peat moss producer in a deal that values the company at about $147 million. Calgary-based IKO announced late Sunday that it would pay $6.60 in cash for the company, formerly known as Sun Gro Horticulture Income Fund.
Shares in GASFRAC Energy Services Inc. tumbled $2.19, or 18.6%, to $9.61 after the oil and gas service company curtailed operations following a propane leak and subsequent fire which destroyed two fracturing pumpers. The Calgary company’s primary business is providing liquid propane gas fracturing services to oil and gas companies.
The Bank of Canada is expected to leave its key rate unchanged at 1% on Tuesday.
But the accompanying statement will be scrutinized for clues as to when the bank will resume hiking rates.
Many economists expect the central bank to resume rate hikes later this year.
And that’s a major reason why Finance Minister Jim Flaherty announced moves to tighten mortgage lending in a bid to reduce household debt levels.
Among other things, mortgage amortization periods will be reduced to 30 years from 35 years and the maximum amount Canadians can borrow to refinance their mortgages will be lowered to 85% from 90%
Economically speaking, Statistics Canada reports Canadian acquisitions of foreign securities reached an eight-month high of $5.8 billion in November.
ON BAYSTREET
The TSX Venture Exchange regained 4.49 points over a see-saw day, to 2,275.45, while the Nasdaq Canada index picked up 3.17 points to 790.57
In Toronto, all but four of the 14 subgroups remained negative by day’s end, weighed mostly by a 0.9% drop in metals and mining stocks, a 0.8% retreat by health-care issues, and a 0.5% drop by global base metals.
The three gainers were information technology, ahead 0.5%, telecoms, up 0.2%, and industrials, inching ahead 0.1%. Gold stocks were flat on the day. 0.5% more robust, and gold, up 0.1%.
ON WALLSTREET
U.S. markets were closed for the Martin Luther King Day holiday.
