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Monday August 24, 6:00 pm Eastern Time
Bank shares flutter lower
TORONTO, Aug 24 (Reuters) - Continued weakness in the
key banking sector put Toronto stocks under pressure on
Monday, forcing the market to close down as the value of the
Canadian dollar eroded further.
The Toronto Stock Exchange's benchmark 300 Composite
Index lost 45.59 points or 0.72 percent to 6248.69, following Friday's tumble of 126.73 points or
1.97 percent.
By contrast, New York's Dow Jones Industrial Average rose 32.96 points or 0.39 percent to
8566.61 points. On Friday the Dow dropped 77.76 points to 8533.65.
Canada's dollar closed weaker at C$1.5486 (US$0.6455) after briefly hitting a record low of
C$1.5512 (US$0.6446) as financial turmoil in Russia and Venezuela weighed on the currency. The
Bank of Canada intervened to buy Canadian dollars several times.
''We're just seeing more of the same in the markets. Big volatility, huge intra-day swings,'' said
Suzann Pennington, fund manager at Synergy Asset Management. At one point the TSE 300 fell by
one percent on Monday.
Foreign investors were busy selling off their bank and financial services holdings in response to the
continued decline of the Canadian dollar, Pennington added.
Focus is beginning to shift from Russia's troubles to the possible problems brewing in Latin
America, she noted.
The financial services sector, which makes up nearly a quarter of the key index, shed 2.54 percent
and led seven of 14 subindexes lower.
The weaker side included banks, conglomerates, which lost 1.81 percent, and oils, down by 1.24
percent.
Modest gains were made by transportation, up 1.34 percent, and utilities, which rose 1.05 percent,
among others.
Trading was light at 73 million shares valued at C$1.5 billion. Declining stocks doubled advances
657 to 307 and 274 closed flat.
Shares in Royal Bank of Canada (RY.TO - news), the country's biggest by asset size, fell C$2.30
or 3.35 percent to C$66.40 and Bank of Montreal (BMO.TO - news) dipped C$2 to C$61.40.
Computer firm Geac Computer Corp. Ltd. (GAC.TO - news) hit a new 52-week low, closing
C$3.75 or 12.5 percent off at C$26.25. Investors panicked after learning vice-chairman and
acquisitions mastermind Stephen Sadler would not stand for board re-election. The company said
he would stay on as its takeover guru.
Bombardier Inc. (BBDa.TO - news), the transportation company, fell C$0.65 to C$18.45. Second
quarter profit reached C$0.16 a share versus year-ago C$0.12 a share.
($1 equals $1.55 Canadian)
More Quotes
and News:
Bank of Montreal (Toronto:BMO.TO - news)
Bombardier Inc (Toronto:BBDa.TO - news)
Geac Computer Corporation Ltd (Toronto:GAC.TO - news)
Royal Bank of Canada (Toronto:RY.TO - news)
Related News Categories: US Market News
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