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Roundup: Canadian stock market dives as trade deficit widens on energy decline

Xinhua, May 6, 2015 Adjust font size:

Canada's main stock market in Toronto Tuesday suffered a nearly-200-points loss across the board as the latest trade deficit data widened thanks to a decline in exports of energy products.

Toronto Stock Exchange's benchmark S&P/TSX Composite Index dived 193.53 points, or 1.26 percent, to 15,173.94 points, the biggest single-day in nearly two months.

Statistics Canada said Tuesday that Canada's merchandise trade deficit widened from 2.2 billion Canadian dollars (about 1.82 billion U.S. dollars) in February to a record 3.0 billion Canadian dollars in March.

Meanwhile, exports of energy products declined 8.9 percent to 6. 9 billion Canadian dollars, and there were widespread decreases in exports among the commodity groupings in the section, led by refined petroleum energy products, which was down 29.7 percent.

The index was also hammered down by a slump in the U.S. stocks after its trade deficit data came in more than expected. The country's international trade deficit in goods and services increased to 51.4 billion U.S. dollars in March from a revised level of 35.9 billion dollars in February, as imports increased more than exports, said the U.S. Department of Commerce Tuesday.

All the eight major sectors turn red following the sluggish trade data. Resources shares dropped largely as the energy sector plunged 1.32 percent, while the metals and mining sector shrank 1. 07 percent.

Most of the leading companies in resources sectors lost ground when Suncor Energy Inc. dropped 1.94 percent to 38.33 Canadian dollars, while First Quantum Minerals Ltd. waned 2.55 percent to 18.35 per share as well.

Financials, the most weighed sector in TSX, retreated 0.88 percent when Toronto-Dominion Bank was lower 0.84 percent to 55.64 Canadian dollars apiece. Bank of Canada Senior Deputy Governor Carolyn Wilkins said Tuesday that the financial system needs reliable funding and market liquidity to support economic activity. "We learned from the crisis that liquidity can be a fickle friend, and its absence can amplify financial distress," she said.

Health Care led the decliners by losing 2.2 percent when the Canadian drug maker Valeant Pharmaceuticals International Inc. lowered 1.89 percent to 264.60 Canadian dollars per share.

In other losers, Industrials and Info Tech tumbled 1.85 percent and 1.13 percent, respectively.

On the currency front, the Canadian dollar Tuesday edged up to 0.8284 U.S. dollar, compared with 0.8270 U.S. dollar on Monday, as the greenback fell against major currencies. Endite