Bay Street Sees Largest Drop Since 1987 - Canadian Commentary

(RTTNews) - Bay Street stocks saw a massive sell-off on Monday as profit-takers collected on last week’s rally. The S&P/TSX Composite Index closed down 864.41 points or 9.32% at 8,406.21 points. Toronto’s main index saw its largest one-day drop in 21 years after closing higher for six sessions in a row.

Resource stocks were the largest decliners as crude oil and gold plunged on the New York Mercantile Exchange. The Gold Index plunged 13.8% as the precious metal dropped $42.20 for the session to finish at $776.80.

Eldorado Gold (ELD.TO) plunged 20.4%, while Yamana Gold (YRI.TO) dropped 19.8% and Agnico-Eagle Mines (AEM.TO) fell 17.4%. The Materials Index fell 13.7%, while mining stocks dropped 11.9%.

Energy stocks also plunged on Bay Street, losing 13.32%. Ensign Energy (ESI.TO) plunged 19.5%, Talisman Energy (TLM.TO) plummeted 17.2%, Penn West Energy (PWT.UN.TO) dropped 16.8%, Petro-Canada (PCA.TO) fell 16.5% and Suncor (SU.TO) declined 16.4%.

Financial stocks 8.4% as all of the big six banks finished in the red. Royal Bank of Canada (RY.TO) plunged 8.7%, Toronto-Dominion (TD.TO) lost 8.2% and Canadian Imperial Bank (CM.TO) plummeted 7.6%.

On the upside, Northbridge Financial Corp. (NB.TO) closed up 18.7% after announcing that Fairfax Financial Holdings (FFH.TO) plans to buy all of the outstanding common shares of Northbridge for C$39.00 in cash per common share. The deal represents total cash consideration of approximately C$686 million.

In economic news, Statistics Canada reported the Canadian economy expanded at a faster than expected annualized rate of 1.3% in the third quarter, compared with a 0.5% decline for the US economy.

South of the border, the ISM’s index of activity in the manufacturing sector fell to 36.2 in November from 38.9 in October, with a reading below 50 indicating a contraction in the sector. With the decrease, the index fell to its lowest level since May of 1982.

For comments and feedback: contact editorial@rttnews.com

Posted in Categories: Canada, Releases, Stocks, USA.

If you like this article please...

Subscribe by RSS Subscribe by Email

Email This Post To A Friend

Commodities Midday Stock Market Update: Dow Hits A Yearly High Gold, Small Caps And The US Dollar Look Ready To Part Ways Why Gold Bullion May Outperform Mining Stocks Oil ETFs: Reasons The Run May Not Be Over Gold, Silver, Oil, Natural Gas: Sideways Trading Action Likely US Dollar Tops, While Precious Metal Stocks Bottom: There’s More To Seasonality Than Summer Doldrums ‘Worst Is Behind Us,’ UH Economist Says Non Farm Payrolls To Bring The Bears Out Eight Months Into The Rally, What’s Next For The US Stock Market And Gold? Update: Gold’s Expanding Arc In Daily Chart Read More »	Financials Stocks Are Broadly Higher On Talk Of Further Stimulus And Kraft’s Cadbury Offer Massive Revolutionary Changes And Their Consequences US Bank Failure Tally Hits 120 So Far This Year Visa - A Momentum Stock Buy Buffett’s Berkshire Hathaway Inc. Has Been Masterfully Managed And Will Continue To Benefit Investors Investors Needn’t Fear A Double-Dip Recession The Mob Rules - At Least So Long As Long As Goldman And The Fed Can Continue To Drive The US Dollar Into The Ocean Stock Picks For Monday: Citigroup, JDS Uniphase And General Electric Are Discount Broker Shares Worth Owning? Investment News Briefs: UBS Fined $13.3 Million; Exxon And Shell Sign Iraq Oil Contract; Shares Of Ancestry.com Soar On IPO Read More »	Exchange Traded Funds Why Muni Bond ETFs Are Appealing Now Rydex Market Timer Funds: Extremely Mixed ETFs To Cover What Warren Buffett Is Buying 10 Reasons ETF Tracking Error Occurs Law Firm Files Class Action Lawsuit On Behalf Of Investors In ProShares Ultra Oil & Gas Fund (DIG) 6 Reasons To Watch China’s ETFs Five Tips For Trading ETFs The Carry Trade: What Is It And How To Play It? Midday Market Update: Jobs Report Cheers Wall Street Gold, Silver, Oil And Natural Gas Have Gone Wild! Read More »
Stocks S&P 500 Options Play Strangle Pong Update Stock Market News: Kraft Formalizing Cadbury Bid For $16.7 Billion; Goldman Sachs Upgrades Adobe System To ‘Buy’ Sun Microsystems’ Earnings Beat Estimates, Sales Down US Stocks That Will Report Earnings Today Oversold Stocks / Overbought Stocks For Monday India Stock Market: Sensex Up 340.44 Points On Monday Many Western Oil Producers Like Exxon, Shell And Eni Are Reluctantly Returning To Iraq’s Oilfields Stock Investor Sentiment: Changes Within The Indicators Combining Bollinger Bands On Rates Of Change In The VIX Is Another Bubble Building In Stocks, Commodities And Currencies? Read More »	Forex EUR/USD Tilting Down But Not Running As NY Session Consolidates The Move Higher Australian Dollar: The Downside Prevails Canadian Dollar: Caution There Remains Little Obstacle On The Horizon To Halt The US Dollar Sell-Off Swiss Franc: The Downside Prevails Japanese Yen: Under Pressure British Pound: The Downside Prevails Euro: Under Pressure EUR/USD Pushing 1.5000 As NY Enters The US Dollar Selling Party Monday’s Futures Outlook: US Dollar Gets Trounced After G20 Failed To Discuss Value Of Dollar Read More »	Economy What If The Social Fabric Of America Tears? Health Care Reform Or Merely Another Wealth Redistribution Program? Chart Of The Week: US Unemployment Rates And Education US Double Dip Recession Highly Likely Cartoon: I Feel Bullish… Economic, News And Corporate Earnings Reports For The Week Nov 9 - 13 Dollars And Books Revisited Stimulus Is Only Stimulating “Economic Misery” The Problems With “Printing Your Way Out Of Debt” US Unemployment Rate Up Unexpectedly At 10.2%: Is The Economic Rebound A “Jobless Recovery”? Read More »