Resource Stocks Drag TSX Lower -- Canadian Commentary

(RTTNews) - Canadian stocks are lower Monday morning, weighed down by falling crude oil prices and a notable decline in Chinese imports in August.

According to data released by the Chinese government earlier in the day, Chinese imports fell 2.4 percent in August, suggesting the world's fastest emerging economy has encountered headwinds.

Energy stocks are down sharply, following a substantial fall in crude oil prices. Gold stocks are down, tracking lower bullion prices.

The benchmark S&P/TSX Composite Index is down 57.40 points or 0.37 percent at 15,512.52.

On Friday, the S&P/TSX Composite Index closed down 6.87 points or 0.04 percent at 15,569.92, after scaling a intraday high of 15,589.90 and a low of 15,525.16.

The Energy Index is down 1.35 percent with Canadian Natural Resources Limited (CNQ.TO), Cenovus Energy Inc. (CVE.TO), Imperial Oil Limited (IMO.TO), Canadian Oil Sands Limited (COS.TO), ARC Resources Ltd. (ARX.TO), Husky Energy Inc. (HSE.TO) and Suncor Energy Inc. (SU.TO) declining 1 to 2 percent.

Canadian Energy Services & Technology Corp.(CEU.TO) shares are down 2.3 percent. The company said Friday that it has closed the acquisition of Southwest Treating Products, LLC. The acquisition is likely to accelerate the expansion of the company's US production and specialty chemicals operations into the west Texas Permian Basin and the Eagle Ford shale in south Texas.

The Capped Materials Index is lower by over 1 percent. Yamana Gold Inc. (YRI.TO) is down more than 3 percent. Goldcorp Inc. (G.TO) and Agnico Eagle Mines Limited (AEM.TO) are lower by nearly 2 percent, while Barrick Gold Corporation (ABX.TO) and Franco-Nevada Corporation (FNV.TO) are down 1.3 percent and 1.7 percent, respectively.

Detour Gold Corporation (DGC.TO) is declining nearly 6 percent, B2Gold Corp. (BTO) is losing about 3.5 percent and Kinross Gold Corporation (K.TO) is down 1.3 percent.

Among big six banks, National Bank of Canada (NA.TO) is up 0.5 percent and Bank of Montreal (BMO.TO) is declining 0.2 percent, while the rest are little changed from their previous closing prices.

The Diversified Metals Index is down 0.35 percent. Nevsun Resources Ltd. (NSU.TO) is declining nearly 4.5 percent, Major Drilling Group International Inc. (MDI.TO) is lower by 3.3 percent and Sherritt International Corporation (S.TO) is down 2.2 percent. Teck Resources Limited (TCK.B.TO) and Capstone Mining Corp. (CS.TO) are modestly lower, while Lundin Mining Corporation (LUN.TO) and Turquoise Hill Resources Ltd. (TRQ.TO) are up in positive territory, gaining 0.8 percent and 1.5 percent, respectively.

The Industrial Index is up 0.4 percent. Bombardier Inc. (BBD.B:TO) is moving up 1.3 percent. MacDonald, Dettwiler and Associates Ltd. (MDA.TO) shares are up 2.3 percent after the company said it has settled the litigation with ViaSat Communications Inc. pursuant to a comprehensive settlement agreement.

The Healthcare Index is up nearly 1 percent with Catamaran Corporation (CCT.TO) and Valeant Pharmaceuticals International, Inc. (VRX.TO) rising 1.8 percent and 1.2 percent, respectively.

The Consumer Staples Index is up 0.4 percent. Alimentation Couche-Tard Inc. (ATD.B.TO), George Weston Limited (WN.TO), Jean Coutu Group (PJC) Inc. (PJC.A.TO) and Cott Corporation (BCB.TO) are up 0.3 to 1 percent.

DHX Media Ltd. (DHX.TO) has appointed leading UK toy company Character Options as global master toy partner for the new series of Teletubbies. The deal was completed by DHX Brands, the company's dedicated brand and consumer products arm. The stock is down nearly 2 percent.

In commodities, crude oil futures are down sharply on concerns over likely fall in demand. Crude oil futures for October are down $1.20 or 1.29 percent at $92.08 a barrel, after dropping to an eight month low of $91.81 a barrel.

Natural gas for October is up $0.064 or 1.67 percent at $3.857 per million btu.

Gold futures for December are down $12.20 or 0.96 percent at $1,255.10 an ounce, dragged down by a stronger dollar.

Silver for December is down $0.099 or 0.52 percent at $19.057 an ounce. Meanwhile, copper is $0.035 or 1.11 percent at $3.205 per pound.

On the economic front, data from Statistic Canada showed new building permits in Canada rose by a seasonally adjusted 11.8 percent in July. June's figure was revised to a gain of 16.4 percent from a previously reported increase of 13.5 percent.