Business
Markets keep heading south
Markets keep heading south
About this update from Teck Resources Limited Class A
[{"type":"text","content":"\nMarkets keep heading south\n\nCitigroup, GM, China factor in\n Mar. 5, 2009 (Baystreet.ca) -- 04:55 pm EST\nBanks led the markets downward as sentiment was also affected by worries about General Motors' future, and China's commitment to stimulating its economy. The result was new lows on Wall Street and substantial losses on Toronto's Bay Street. Toronto's S&P/TSX composite index suffered a 191-point tumble to finish the day's trading at 7,623.31There had been hopes that China would use the start of the National People's Congress' annual session to announce new economic measures, in addition to the promised spending of $585 billion U.S. outlined in November.But there was a sense of letdown after Chinese Premier Wen Jiabao said Thursday the government would help the world's third-largest economy grow by 8% this year, but stopped short of promising new measures.The financial sector was down after undergoing a battering earlier in the week in the wake of a $62-billion U.S. loss at insurer American International Group, a U.S. corporate record.Royal Bank declined 70 cents to $29.88 and CIBC shares were down $1.40 to $38.23 after it announced that it will raise up to $1.6 billion in a Tier 1 debt issue. It said that completion would take the bank's pro-forma Tier 1 capital ratio to about 11.5%. Canadian Western Bank reported Thursday a first-quarter profit of $25.6 million, down 1% from a year-earlier $25.9 million, as the fallout of the economic downturn continued to pressure its earnings. Its shares gave back 91 cents to $9.69. The TSX energy sector slid amid falling oil prices and earnings reports from some of the oilpatch's heavyweights - while another company filed for creditor protection. Natural gas explorer and producer Canadian Superior Energy Inc. says it has filed an application with the Court of Queen's Bench of Alberta for protection from creditors under the federal Companies' Creditors Arrangement Act. Its shares plunged 21 cents to 28 cents. Canadian Natural Resources Ltd. shares rose $2.41 to $40.95 after it said Thursday it was reducing its 2009 capital spending budget by $800 million in anticipation of a turbulent year marked by low commodity prices. The company recorded net earnings of $1.8 billion during the fourth quarter, up from year-earlier profits of $798 million. Canadian Natural also said it was raisin...