Business
Stock woes continue
Stock woes continue
About this update from Barrick Mining Corporation
[{"type":"text","content":"\nStock woes continue\n\n\n May 19, 2010 (Baystreet.ca) -- The Toronto stock market tumbled Wednesday as German moves to support the euro by cracking down on speculators failed to reassure investors that the European Union can contain a government debt crisis.The S&P/TSX composite index ended Wednesday's session off 98.74 points to 11,665.77, after Germany's regulator announced it was banning so-called naked short selling of euro-zone government bonds, as well as shares in 10 key German financial institutions until March 31, 2011. The index had been off more than 200 points during the day. In a typical short sale, a trader sells borrowed shares in hopes of buying them cheaper later and profiting on the difference. A "naked" short is when traders sell shares without borrowing them first. The euro initially responded badly to the German move, dropping to a four-year low of $1.2146 U.S. before recovering to trade at $1.2349 U.S. There were also big swings in other currencies and commodities as investors digested the action by the euro-zone's biggest economy.The German move rattled markets in part because it suggests that policy-makers are grasping at straws to stem flagging confidence about the ability of European governments to pay off their heavy debt amid slow growth.The TSX energy sector fell as Suncor Energy fell 16 cents to $31.15 and Canadian Natural Resources fell $35.98, or 50.8%, to $34.80.Among gold, issues, Barrick Gold Corp. faded $1.64 to $44.46 while Kinross Gold Corp. lost 77 cents to $18.05.The July copper contract in New York was also off early lows, down seven cents to $2.96 U.S. after earlier dropping eight cents. The base metals sector was down as Teck Resources dropped 85 cents to $32.68 and First Quantum was off $2.91 to $62.74.Outside commodities, the industrial sector was the biggest decliner as Canadian Pacific Railway shed 91 cents to $56.69.In earnings news, Canaccord Financial Inc. reported a profit of $7.5 million for its fourth quarter and an annual profit of $38.5 million. It was a big improvement on comparable periods a year earlier, when Canaccord's fourth-quarter net income was just $3.6 million and fiscal 2009 recorded a $47.6-million annual loss. Its shares were off 32 cents to $9.12.Elsewhere, proxy shareholders of Goldcorp have overwhelmingly voted down a resolution to suspend mining...