Alexa
  • Directory of Taiwan

Toronto stock market sheds 200 points in volatile session

Toronto stock market sheds 200 points in volatile session

The latest jitters over global credit markets sent the Toronto stock exchange index down almost 600 points in intraday trading Thursday _ its biggest point drop in six years _ before recovering some.
The S&P/TSX composite index ended the day down 200.06 points, or 1.53 percent, to 12,848.7.
Resource stocks were the hardest hit as investors worry that the global credit squeeze could slash demand for commodities.
"I think people are sort of wondering what the next stage here is (and) what effect is it going to have on global growth," said CIBC World Banks senior economist Peter Buchanan.
"I think we're also seeing some evidence, perhaps, that hedge funds are doing some selling. There may be cases where they earlier bought some of the resource stocks, some of the mining stocks and the prospect for potential takeovers down the road and now for one reason or another ... they're selling those stocks."
The drops in Toronto and New York followed similarly steep losses in overseas markets.
The Toronto market had been up almost 14 percent for the year as of July 19, when it hit its most recent record high and before subprime mortgages in the U.S. started defaulting at faster rates.
This has led to tighter access to credit around the world as investors worry about the value of loans and rising delinquencies and defaults.
The Canadian dollar rebounded after losing over two US cents in the past two sessions, rising 0.22 of a cent to 93 US cents.
The Bank of Canada injected $370 million (US$343 million) into the system Thursday on top of Wednesday's infusion of $350 million (US$324 million) in an attempt to further stabilize the markets.
Central banks around the world have been supplying billions of dollars to banks in the past week to make cash available for lending and keep interest rates from rising amid signs that credit was drying up.


Updated : 2021-10-19 13:40 GMT+08:00