Canadian stock market extends losses as copper hits 5-year low

Canada's main stock market retreated further on Tuesday as copper hit a five-year low and triggered a selloff in the mining shares.

Toronto Stock Exchange's benchmark S&P/TSX Composite Index was down 77.85 points, or 0.55 percent, to 14,187.16 points. Half of the eight major sectors were in the red, with metals leading the fall.

The index declined as the metals and mining sector lost 9.25 percent over a slump in the copper price. Copper for March delivery fell 0.0815 U.S. dollars to 2.644 dollars per pound on the New York Mercantile Exchange. It was the lowest level for copper since October 2009.

Major losers included the heavyweight Teck Resources Ltd., which tumbled 5.97 percent to 14.66 Canadian dollars (about 12.26 U.S. dollars). And another basic metals giant First Quantum Minerals Ltd., dived 14.85 percent to 13.47 Canadian dollars.

The gold shares also dropped sharply as Goldcorp Inc. plunged 5. 48 percent to 24.31 Canadian dollars, and Yamana Gold Inc. dived 13.73 percent to 4.90 Canadian dollars.

Industrials fell 0.25 percent as Canadian National Railway Company gave back 0.87 percent to 78.30 Canadian dollars, and Canadian Pacific Railway Ltd. slipped 0.27 percent to 211.59 Canadian dollars per share.

Financials, the index's most heavily weighted sector, edged down 0.07 percent, when Bank of Nova Scotia lost 0.24 percent to 61.95 Canadian dollars, and Royal Bank of Canada decreased 0.14 percent to 76.70 Canadian dollars.

However, the energy sector gained a modest recovery of 0.37 percent in spite of the falling oil prices. Suncor Energy Inc. advanced 1.43 percent to 34.81 Canadian dollars after the Canadian oil producer announced decision to reduce its workforce by 1,000 and cut 1 billion Canadian dollars from its capital budget due to plummeting crude oil prices.

"Cost management has been an ongoing focus, with successful efforts to reduce both capital and operating costs well underway before the decline in oil prices. However, in today's low crude price environment, it's essential we accelerate this work," Steve Williams, president and chief executive officer of Suncor Energy, said.

Telecom sector added 0.96 percent when BCE Inc. increased 0.77 percent to 55.30 Canadian dollars. Meanwhile, healthcare and info- tech rose also 0.21 percent and 0.53 percent, respectively.

On the currency front, the Canadian dollar closed higher Tuesday to 0.8365 U.S. dollar from 0.8356 U.S. dollar on Monday.