After month-long rally, Canadian markets slipping

June 18th, 2009 - 11:34 am ICT by IANS  

Toronto, June 18 (IANS) The almost month-long rally on the Canadian markets is over, with the Toronto Stock Exchange (TSX) index slipping 5.4 percent in the three sessions of the week.
For the fourth straight day Wednesday, the world’s biggest energy leader declined to almost touch the 10,000-mark after a high of 10,726 points last week.

The TSX index dived 241 points on profit-taking by investors in commodity shares to close at 10,066.

Commodities, including uranium and minerals, are the major drivers of the Canadian economy, apart from the oil and gas and financial sectors.

The national major Potash Corporation (of Saskatchewan) tumbled almost 11 percent to $107.91 during the day after reports on its decision to cut production amid the continuing global economic crisis.

The early morning decline in oil prices also pushed the energy sector down 3.45 percent, with top Suncor Energy dropping 4.8 percent to $34.43 and Encana Corp 3.4 percent to $57.00.

The financial sector too was in retreat, the top Royal Bank of Canada and Scotiabank dropping more than one percent each to close at $44.03 and $39.27 each.

Since almost touching 7,600 mark in March, the Canadian market - considered to be the most stable of G8 nations - has recovered more than 40 percent mostly on rebound in oil prices.

The world’ biggest oil and gas market and North America stock market had created history last year by crossing the 15,000-mark in its more than 150-year-old history.

Riding on high oil prices, the Canadian dollar - called the loonie - too had gained parity with the US greenback.

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