UPDATE 1-Toronto stocks slide on commodities slump
August 15th, 2008 | by admin |(Adds details)
TORONTO, Aug 15 (Reuters) - Toronto Stock Exchange’s mainindex was sharply lower on Friday morning, as a slump incommodity prices hit energy and materials stocks.
Oil slipped to below $113 a barrel on faltering globaldemand and rising supply, sliding further from its record above$147 in July.
Gold also took a thumping, sagging below $800 an ounce, asa strengthening U.S. dollar and a sluggish global economy hitdemand.
“Commodities are weak on the prospect of a globalslowdown,” said Francis Campeau, broker at MF Global Canada, inMontreal.
Commodities are also getting hit because of a strengtheningU.S. dollar and as speculators liquidate their long positionsin oil and gold, Campeau added.
Shortly after the open, the S&P/TSX composite index.GSPTSE was down 216.34 points, or 1.6 percent, at 13,142.57,with most of its 10 main groups lower.
The key energy sector slipped 2.9 percent with EnCana Corp(ECA.TO: Quote, Profile, Research, Stock Buzz) down C$2.70, or 3.7 percent, at C$70.40.
The materials sector, home to resource shares, fell 3.5percent. Kinross Gold (K.TO: Quote, Profile, Research, Stock Buzz) dropped 71 Canadian cents, or 4.3percent, to C$15.89, while Agnico-Eagle (AEM.TO: Quote, Profile, Research, Stock Buzz) slipped 5percent to C$51.18.
