Weak Commodities drag down tsx
The Toronto stock market ended another losing session on Thursday as weaker commodities weighed heavy on the industrial and metals sectors.
The S&P/TSX composite index dropped 26.91 points to 12,409.25 while the TSX Venture Exchange slid 8.63 points to 1,334.89. The Canadian dollar fell 0.21 of a cent to US 102.41¢.
TSX energy stocks were up 0.4% while the price of crude inched lower for the October contract, falling 11¢ to US$91.87 a barrel on the New York Mercantile Exchange. The November contract, which traded in higher volume, gained 12¢ to $92.42.
Copper slid 5.5¢ to US$3.76 a pound while gold bullion fell $1.50 to end the session at US$1,770.20 an ounce.
Shares of Canadian railroad companies fell after U.S. competitor Norfolk Southern Corp. warned that its earnings will be weaker than anticipated. Canadian Pacific Railway dropped 2.2%, or $2.17. to
$80.75, while Canadian National Railway pulled back 4.2%, or $4.15, to $87.44. The TSX Industrials sector fell 2.1%.
Among the sobering news for investors was a survey pointing to a recession in Europe, figures from Japan that showed its export sector was continuing to suffer and a private survey of manufacturers in China that showed activity fell again in September.
The weakness in China has caused a par- ticular concern over whether the world’s second-largest economy may affect the demand for commodities. Prices for soybeans, platinum and palladium also dropped.
In the U.S., the number of Americans seeking unemployment benefits fell only slightly last week. The Labor Department said Thursday that applications declined by 3,000 from the previous week to a seasonally adjusted 382,000.
The Dow Jones industrial average was ahead 18.97 points to 13,596.93, the Nasdaq composite index fell 6.66 points to 3,175.96 and the S&P 500 index backed off 0.79 of a point to 1,460.26.
In corporate developments, shareholders of Nexen Inc. have approved a proposed $15.1-billion Chinese takeover of the company by China National Offshore Oil Company. The transaction still requires approval by the Canadian government. Nexen shares were up 5¢ to $24.72.
Air Canada shares held steady at $1.23 as the company announced plans to hire 900 new employees for the main carrier, and another 200 for its new low-cost carrier, set to launch next year.
An Ontario judge has certified a $1-billion class-action lawsuit against SNCLavalin on behalf of investors who saw the value of their shares plummet on revelations about payments in North Africa. Shares were down 64¢ to $38.16.