TSX Ends Sharply Lower On Global Growth Concerns -- Canadian Commentary

(RTTNews) - Canadian stocks plummeted to end lower for a fifth straight session on Thursday, driven by heavy selling in resource and financial stocks, amid uncertainty over the global economy and on lingering geopolitical concerns over the ongoing unrest in Syria.

Energy stocks plunged on reports that Malaysian oil major Petronas might pull out of a liquefied natural gas project in British Columbia, due to delayed approval process and likely imposition of LNG tax.

Some disappointing U.S. data also contributed to the sharp decline with a sharp pullback in orders for manufactured durable goods in August and an increase in U.S. jobless claims hurting the most.

Initial claims for unemployment benefits in the U.S. increased last week, after having reported first-time claims in the earlier week at a near fourteen-year low. Reflecting volatility in commercial aircraft orders, a U.S. Commerce Department report on Thursday showed a sharp pullback in orders for manufactured durable goods in August following the substantial increase seen in July.

The S&P/TSX Composite Index closed Wednesday at 14,893.57, down 226.97 points or 1.50 percent. The index scaled a intraday high of 15,120.54 and a low of 14,879.30.

On Wednesday, the index closed down 5.13 points or 0.03 percent at 15,120.54, after scaling a intraday high of 15,164.680 and a low of 15,005.62.

Crude oil slipped to end lower after some soft economic data from the U.S. reignited concerns over demand growth with fears of a supply glut as investors digested news of increased supplies from Libya.

The Energy Index plunged 2.07 percent, with U.S. crude oil futures for November delivery dropping $0.27 or 0.3 percent to close at $92.53 a barrel Thursday on the Nymex.

Among energy stocks, Cenovus Energy Inc. (CVE.TO) dropped 3.14 percent, Suncor Energy Inc. (SU.TO) fell 1.37 percent, Encana Corp. (ECA.TO) slipped 1.32 percent, Talisman Energy Inc. (TLM.TO) down 0.70 percent, and Canadian Natural Resources Limited (CNQ.TO) declined 2.06 percent.

Enbridge Inc. (ENB.TO) fell 2.16 percent, while TransCanada Corp. (TRP.TO) dropped 2.33 percent.

The Financial Index dived 1.97 percent, with Toronto-Dominion Bank (TD.TO) dropping 2.78 percent, Canadian Imperial Bank of Commerce (CM.TO) dipping 3.27 percent, Royal Bank of Canada (RY.TO) down 1.77 percent, Bank of Nova Scotia (BNS.TO) declining 1.77 percent, and Bank of Montreal (BMO.TO) down 1.68 percent.

National Bank of Canada (NA.TO) surrendered 1.63 percent, while Manulife Financial Corp. (MFC.TO) fell 1.47 percent.

Gold futures ended higher tracking some largely declining global equity markets on a couple of soft economic data out of the U.S., even as the dollar trended higher.

The Global Gold Index shed 1.03 percent, with gold for December delivery gaining $2.40 or 0.2 percent to settle at $1,221.90 an ounce on the New York Mercantile Exchange Thursday.

Among gold stocks, Barrick Gold Corp. (ABX.TO) up 1.06 percent, Yamana Gold Inc. (YRI.TO) gathered 0.56 percent, B2Gold Corp. (BTO.TO) added 2.16 percent, Eldorado Gold Corp. (ELD.TO) gathered 0.39 percent, and Goldcorp Inc. (G.TO) moved up 1.30 percent.

The Capped Materials Index ended flat on rising gold stocks, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 0.44 percent.

The Diversified Metals & Mining Index dropped 1.75 percent, with First Quantum Minerals Ltd. (FM.TO) down 2.30 percent, Lundin Mining Corp. (LUN.TO) shedding 1.21 percent, and Teck Resources Limited (TCK.B.TO) falling 2.86 percent. Sherritt International Corp. (S.TO) gained 3.04 percent.

The Capped Industrial Index plummeted 1.52 percent, with Bombardier Inc. (BBD.B.TO) down 1.68 percent.

The Information Technology Index plunged 2.41 percent, with BlackBerry Limited (BB.TO) dropping 6.29 percent after having launched its new smartphone 'Passport' yesterday.

Among other tech stocks, Constellation Software Inc. (CSU.TO) shed 1.52 percent and Avigilon Corp. (AVO.TO) dipped 1.45 percent,

The Healthcare Index gained 0.39 percent, with Valeant Pharmaceuticals International, Inc. (VRX.TO) up 3.18 percent, after indicating that it expects same store organic growth unadjusted for generics to exceed 15 percent in third quarter.

Valeant also said it has sent a letter to Allergan, Inc. (AGN), issuing an update on its expected third-quarter results and expressing continued willingness to negotiate a mutually agreeable transaction with Allergan.

The Telecom Index dived 1.92 percent with Rogers Communications Inc. (RCI.B.TO) dropping 1.75 percent and BCE Inc. (BCE.TO) down 1.52 percent.

The Consumer Discretionary Staples is down 1.59 percent, with Alimentation Couche-Tard Inc. (ATD.B.TO) down 0.71 percent, Magna International Inc. (MG.TO) down 2.57 percent and Canadian Tire Corporation, Limited (CTC.A.TO) shedding 2.29 percent.

Valeant Pharmaceuticals International, Inc. (VRX.TO) gained 3.18 percent after the company's unit, Bausch + Lomb said the Phase 3 trials of Vesneo, used for the reduction of intraocular pressure or IOP in patients with glaucoma or ocular hypertension, met their primary endpoint and showed positive results on a number of secondary endpoints.

Sears Canada Inc. (SCC.TO) gained 0.79 percent after announcing that its President and Chief Executive, Douglas Campbell plans to resign citing personal reasons.

Manitoba Telecom Services Inc. (MBT.TO) shares dropped 3.19 percent after reaching an agreement with unions and retirees regarding implementation of a court ruling that said a multimillion-dollar pension surplus prior to 1997 belonged to the workers and retirees.

In economic news from the U.S., a Labor Department report showed jobless claims to have climbed less than expected to 293,000 in the week ended September 20, an increase of 12,000 from the previous week's revised level of 281,000. Economists had expected jobless claims to rise to 300,000.

A Commerce Department report showed orders for durable goods in the U.S. declined by a record 18.2 percent in August, after posting a sharp 22.5 percent increase in the preceding month. Economists expected orders to drop by about 18.0 percent. Excluding transportation sector, orders were up 0.7 percent in August.

Adjusted for seasonal influences, the Markit Flash U.S. Services PMI Business Activity Index dropped to 58.5 in September from 59.5 in August. Economists expected a reading of 59.2 for September.

European Central Bank President Mario Draghi said Thursday that Euro area economy is likely to expand in the second half of this year even though the recovery seems to have lost momentum recently.

The Asian Development Bank maintained its growth outlook for Developing Asia as key nations move ahead with structural reforms. China is forecast to grow 7.5 percent in 2014 and 7.4 percent in 2015, unchanged from the estimates published in April. The ADB maintained the 5.5 percent growth forecast for India in 2014 but raised its 2015 outlook by 0.3 percentage points to 6.3 percent.