TSX Closes At Two Month Lows; Iamgold, Bombardier Among Biggest Losers

By MidnightTrader.com Staff,

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Canada's main stock index finished Wednesday's session down around 200 points or nearly 2% at two-month low levels, largely hurt by ongoing concerns about the U.S. 'fiscal cliff' and European debt crisis. But companies such as Iamgold (IMG.TO) and Bombardier (BBD-B.TO) were among the biggest losers and weighed on the overall market.

IAMGOLD Corporation (IMG.TO) lost nearly 20% today as it announced that it has completed a transaction with INV Metals Inc.to sell IAMGOLD Ecuador S.A., which includes the Quimsacocha project in Ecuador. The value of the transaction is $30 million. Yesterday, Iamgold reported its Q3 2012 results. Revenues were $386.8 million compared to $431.9 million in the third quarter 2011. Net earnings from continuing operations (attributable to equity holders) increased by 56% to $78.0 million ($0.21 per share) from $50.0 million ($0.13 per share) in the third quarter 2011. Adjusted net earnings (attributable to equity holders) were $60.2 million ($0.16 per share) compared to $112.4 million ($0.30 per share) in the third quarter 2011

Most actively traded Bombardier (BBD-B.TO) continues to lose ground in dropping another 3% and hitting fresh new year lows. The S&P ratings agency is lowering Bombardier's long-term corporate rating one notch to 'BB' from 'BB+' with a stable outlook due to the company's "significantly lower-than-expected" cash generation this year as customer advances and operating profit fell amid the weak global economy. Fitch Ratings recently did the same and Moody's shifted its outlook on the company from stable to negative and lowered its liquidity rating, citing similar reasons.

Crude oil futures settled higher Wednesday, with December crude oil adding 94 cents to settle at US$86.32 a barrel as geopolitical tensions in the Middle East led to oil-supply concerns. Gold for December delivery rose $5.30 to settle at $1,730.10 an ounce.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Commodities
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