TSX Falters Again As Weak Commodities Weigh -- Canadian Commentary

(RTTNews) - Canadian stocks are notably lower Monday morning, extending losses to a third successive session, with weak commodity prices triggering some heavy selling in the resources section.

Concerns about a slowdown in China and data showing an unexpected drop in U.S. existing home sales are also weighing on the market.

Investors are looking ahead to a report on Chinese manufacturing activity, due tomorrow. Data on Canadian retail sales and durable goods orders are also on tap later.

Worries about the Chinese economy have risen after the Chinese Finance Minister Lou Jiwei said the government may not make major policy changes despite downward pressure on economic growth.

Besides mining and energy stocks, shares from healthcare section are also notably lower. Consumer discretionary and consumer staples are edging up, while financial stocks are turning in a mixed performance.

The benchmark S&P/TSX Composite Index is down 87.78 points or 0.58 percent at 15,177.57.

On Friday, the index ended down down 200.19 points or 1.29 percent at 15,265.35. The index shed 1.7 percent last week.

The Diversified Metals & Mining Index is down 1.8 percent. Capstone Mining Corp. (CS.TO) is declining over 4 percent and First Quantum Minerals Ltd. (FM.TO) drifting down by 3.5 percent. Major Drilling Group International Inc. (MDI.TO), HudBay Minerals Inc. (HBM.TO), Sherritt International Corporation (S.TO) Teck Resources Limited (TCK.B.TO) are lower by 2 to 3 percent and Lundin Mining Corporation (LUN.TO) is down by about 1.2 percent.

The Capped Materials Index is down more than 1 percent, with Franco-Nevada Corporation (FNV.TO), Silver Wheaton Corp. (SLW.TO) and Agnico Eagle Mines Limited (AEM.TO) declining by 1 to 2 percent.

Among other prominent losers in gold section, B2Gold Corp. (BTO.TO) is down nearly 3 percent, IAMGold Corporation (IMG.TO) is down 3.2 percent, Detour Gold Corporation (DGC.TO) is declining 2 percent and Kinross Gold Corporation (K.TO) is down 1 percent.

The Energy Index is down 1.1 percent. Suncor Energy Inc. (SU.TO), Encana Corporation (ECA.TO), Crescent Point Energy Corp. (CPG.TO), Canadian Oil Sands Limited (COS.TO), ARC Resources Ltd. (ARX.TO), Talisman Energy Inc. (TLM.TO) and Husky Energy Inc. (HSE.TO) are lower by 1 to 2 percent.

Among big six banks, Toronto-Dominion Bank (TD.TO) and Bank of Montreal (BMO.TO) are gaining about 0.4 percent each, while the others are flat. The Financial Index is up marginally.

The Healthcare Index is down 1.1 percent with Valeant Pharmaceuticals International, Inc. (VRX.TO), Extendicare Inc. (EXE.TO) and Catamaran Corporation (CCT.TO) declining by 1 to 1.4 percent.

The Consumer Staples Index is up 1.05 percent. Alimentation Couche-Tard Inc. (ATD.B.TO) is moving up 3.3 percent and Metro Inc. (MRU.TO) is rising 1.7 percent.

The Consumer Discretionary Index is up 0.77 percent, with Magna International Inc. (MG.TO) and Tim Hortons Inc. (THI.TO) both gaining over 2 percent.

Endo International Plc (ENL.TO) will be in focus after Auxilium Pharmaceuticals Inc. (AUXL)'s board of directors rejected the unsolicited $2.2 billion proposal from Endo International, noting that the offer significantly undervalues Auxilium. Meanwhile, Auxilium has favoured the merger deal with Canadian eye drug maker QLT Inc. (QLT.TO). QLT Inc. shares are down over 2 percent, while Endo Internatioanl has not been traded yet this morning.

Primero Mining Corp. (P.TO) announced that it has appointed Wendy Kaufman as its Chief Financial Officer. Ms. Kaufman, a Chartered Professional Accountant, has over 20 years of financial management experience in the mining sector. The stock is down over 3.5 percent.

BCE Inc. (BCE.TO) has announced that it has successfully completed the initial phase of its offers to purchase all outstanding Bell Aliant Inc. (BA.TO) common shares and to exchange all outstanding Bell Aliant preferred shares. BCE is up 0.4 percent, while shares of Bell Alliant Inc. are up more than 1 percent.

In commodities, crude oil futures for October are down $0.50 or 0.55 percent at $91.91 a barrel.

Natural gas for October is up $0.030 or 0.80 percent at $3.870 per pound.

Gold futures for December are down $2.70 or 0.22 percent at $1,213.90 an ounce.

Silver for December is down $0.177 or 1.0 percent at $17.667 an ounce. Meanwhile, copper is down $0.055 or 1.79 percent at $3.036 per pound.

In economic news from the U.S., data from Chicago Federal Reserve showed economic activity weakened in August, with the Chicago Fed's national activity index declining to -0.21 in the month, down from a positive reading of 0.26 in the previous month.

Meanwhile, according to a report from the National Association of Realtors, U.S. existing home sales unexpectedly dropped 1.8 percent to a seasonally adjusted 5.05 million in August, from a downwardly revised 5.14 million in July. Economists expected existing home sales to climb to an annual rate of 5.18 million from the 5.15 million originally reported for the previous month.