Roger Biduk writes:
The Toronto stock market has tumbled more than 400 points or about three per cent at the end of a punishing week.
The TSX was hit with a triple whammy - uncertainty over an American financial system rescue plan punished bank stocks, BlackBerry maker Research In Motion (TSX:RIM) shares took a huge drop and lower oil prices sent energy stocks down.
The S&P/TSX composite index finished the day well off its 518-point low of the day, down 420.51 points to 12,126 for a loss of 787 points or 6.1 per cent this week.
Normally, a 400-plus point drop is big news, but this is only the fourth-largest drop in the month so far. The index also soared almost 850 points in one day a week ago.
Research in Motion's disappointing quarterly earnings torpedoed its stock, dropping more than 25% to $75.45 in the opening minutes, a $24.49 change. RIM showed no signs of recovery at the close, finishing the day at $72.57, a $28.43-per-share drop, or 28.15%, to lead a widespread fall-off across all the major sectors on the exchange.
Meanwhile EnCana Corp. and Suncor Energy stocks were both hit hard. EnCana closed at $71.22, down $3.40 or 4.56% while Suncor settled at $46.55 a 4.67% drop for $2.28 per share.
The two largest energy companies on the exchange contributed to a 28.34% slump in the sector as world markets worried disappearing U.S. credit would strangle global growth and lessen demand in crude oil and other resources.
The Canadian dollar closed up 0.14 cent at 96.82 cents US.
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
Saturday, September 27, 2008
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