Biggest loss for Canadian markets in 20 yearsDecember 2nd, 2008 - 9:08 am ICT by IANS
Toronto, Dec 2 (IANS) The Toronto stock exchange (TSX) plunged more than nine percent Monday, registering the second biggest single-day loss in its history.The markets had suffered the biggest loss of 11 percent in October 1987.
As the markets opened, the composite index fell by 864.41 points or 9.32 percent to end the first day of the week at 8,406.21.
Monday’s decline eclipsed the record of Nov 20 this year when the TSX composite dived 765.80 points to close the day at 7,724.80. On that day, the index was pushed below the 8,000-mark for the first time in five years.
The on-going political turmoil in which the just elected Conservative Party government faces the prospect of being replaced by a coalition of three opposition parties took its toll the markets.
Energy stocks saw a 12 percent decline as crude oil slipped below the $50-mark. Mining stocks were also down 12.9 percent. Financial stocks saw erosion of 8.2 percent
Monday’s fall ends the rising streak witnessed during the last week when the market rose 1,100 points.
The Canadian dollar was also down against the greenback, ending the day at 80.31 cents US.