Canadian shares plunged to the lowest level since October 2013 after a rout in Chinese stocks sparked a worldwide selloff of equities.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 2.7% to 13,117.15 at 11:32 a.m. in Toronto, after falling as much as 5.7% to 12,705.17, the lowest intraday price since October 9, 2013.
Twenty-two shares declined for every issue that advanced as all of the ten share groups were in the negative territory.
Fears that China’s economy is slowing dramatically sparked the heavy selling around the globe in recent days. Beijing’s unexpected move to devalue its currency two weeks ago raised the alarm that the world’s second-largest economy may be in worse shape than many had thought.
The energy sector, the main index's second most heavily weighted group, was the largest laggard with a 3.8% drop, as the plunge in oil prices accelerated on Monday.
Suncor Energy (TSE:SU), Canada's largest oil sands producer, lost 2.9% to C$33.29.
Enbridge (TSE:ENB), Canada's largest pipeline company, sank 1.8% to C$38.93.
Canadian Natural Resources Limited (TSE:CNQ), Canada’s second-largest energy producer, sagged 3.9% to C$25.75.
In early trade on Monday morning, the price of West Texas Intermediate was down about 5.7% and traded as low as $38.13 a barrel, a new post-financial-crisis low for the commodity.
The materials sub-index, which includes mining shares, fell 1.6% even as gold edged higher. Goldcorp (TSE:G), Canada’s largest gold miner by market value, fell 2.1% to C$19.99. Barrick Gold (TSE:ABX), Canada’s second-largest gold miner, sank 4% to C$10.09.
First Quantum Minerals (TSE:FM), a copper miner, dropped 5.9% to C$6.40.
Teck Resources (TSE:TCK.B), Canada’s largest diversified mining company by market value, slumped 5.4% to C$7.85. Spot gold rose 0.2 percent to $1,162.80 an ounce, within reach of its highest since July 7 at $1,168.40 hit on Friday.
Financials, the index's most heavily weighted sector, decreased 3.3%. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, gave up 2.4% to C$71.10. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, inched down 2.2% to C$49.22.