Markets

TSX Dives 1% at Midday As Commodities Weigh on Miners, Energy; Telecom The Only Gainer Amid Broad Decline

The Canadian main stock index dropped 1% at midday to 14533.55, weighed down by the weakness in commodity prices.

Mining and energy shares led the broad decline, down 1.7% and 1.4%, respectively, with gold prices slumping 0.8% and crude oil slipping 0.8%. Sprung Investment President Michael Sprung reportedly said: "...the market would appear to be ahead of fundamentals in that it's becoming harder to find things that look cheap. That would tend to indicate, as well, that some form of correction might be a cleansing factor in the market."

Industrials were also sharply lower, down by 1.4%, with Bombardier (BBD-B.TO) dropping 5% on news Air Canada (AC-B.TO) won't replace its Embraer jets with CSeries planes to cut costs. The heavyweight financial sector slipped 0.7%, with CI Financial (CIX.TO) losing 4% after Scotiabank (BNS.TO) said Wednesday it is looking to divest some or all of its holdings in the asset management company.

Only the telecom sector was in the green, up 0.3%.

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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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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