Canadian stocks fell yesterday, as investors took profits following eight straight days of gains. The S&P/TSX Composite index fell 184.14 points, or 2.12%, to close at 8506.35 as oil and gold prices slumped after sizable run-ups the day before. For the week, the country's top exchange climbed 2.4% from its previous week close of 8303.39. Meanwhile, the TSX Venture exchange was down 1.77 points, or 0.20%, yesterday, closing at 901.80. The Canadian dollar fell 12 basis points to US80.68¢.
"With commodities down, we didn't have much of a chance yesterday," said Michael Sprung, a portfolio manager at Sprung & Co. Investment Counsel in Toronto. "Particularly after the financials had taken such a run it isn't surprising that people decided to lock some of that in."
Losers outpaced gainers by more than two to one in Toronto, with nine of the exchange's 10 subindices ending the session in the red.
The materials group fell 3.23% as prices for base and precious metals retreated. Gold fell US$2.60 an ounce to US$956.20. Teck Cominco Ltd., (TCK. b/TSX) was among the most active stocks in the metals and mining space, with more than 17 million shares trading hands. After rising as much as 7% in early trading, the diversified miner ended the day down 0.68%, or 4¢, to $5.88 on news its credit rating was cut to junk by Standard & Poor's because low metal prices will make it harder to fund or refinance its debt.
Financial and energy stocks also dropped, giving up 2.05% and 1.13%, respectively. Light sweet crude oil was slightly lower at US$51.06 a barrel, down US55¢.