At the open: Canada, the new dog
Thursday, March 20, 2008
The Canadian stock market followed commodity prices downward on Thursday at the start of trading, which isn't a surprise given its heavy concentration on energy and metals.
The S[amp]amp;P/TSX composite index dipped 195 points, or 1.5 per cent, bringing it to 12,515 and adding to yesterday's woes. The big banks were fairly strong, led by Bank of Montreal's 5.5 per cent surge following news that it may have avoided a $1.5-billion writedown.
But commodity producers took it on the chin after gold fell to $915 (U.S.) an ounce, down $29, and crude oil fell more than $3 a barrel to $98.59. Talisman Energy Inc. fell 1.9 per cent, EnCana Corp. fell 2.4 per cent and Barrick Gold Corp. fell 4.8 per cent.
The Canadian dollar, which has long been associated with commodity prices, tumbled 1.1 cents next to the U.S. dollar, to 97.6 cents.
The downturn in Canadian stocks marks a sudden divergence with the U.S. market, where things appear to be picking up. The Dow Jones industrial average rose 31 points in early trading, or 0.3 per cent, to 12,131. American International Group Inc. rose 3 per cent, General Electric Co. rose 2.5 per cent and Citigroup Inc. rose 1.9 per cent