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Roundup: Canadian stock market tumbles as U.S. dollar rally pressures resources-based shares

Xinhua, May 27, 2015 Adjust font size:

Canada's main stock market in Toronto on Tuesday plunged when a sharp rally in the U.S. dollar weighed on the resources shares.

Toronto Stock Exchange's benchmark S&P/TSX Composite Index was sharply down 136.59 points, or 0.9 percent, to 15,050.81 points, which was the biggest decrease in a single trading day during almost three weeks.

And the Canadian dollar in the day went down 0.9 percent to 0. 8047 U.S. dollar, from 0.8121 U.S. dollar Monday when the U.S. dollar gained against other currencies as upbeat economic data boosted rate hike forecast.

The stock market was hammered down when Energy and Metals and Mining led the decliners, shrinking 1.5 percent and 1.32 percent, respectively, over lower oil and gold prices due to a big rally in the U.S. dollar.

On the New York Mercantile Exchange, light, sweet crude for July delivery lost 1.69 U.S. dollars to settle at 58.03 U.S. dollars a barrel, while the most active gold contract for June delivery fell 17.1 U.S. dollars, or 1.42 percent, to settle at 1, 186.90 dollars per ounce.

Most of the energy and metals stocks were in the losing streak when Suncor Energy Inc. lost two percent to 36.21 Canadian dollars (about 29.14 U.S. dollars) and Barrick Gold Corp. shed 3.7 percent to 14.56 Canadian dollars per share.

The most heavily weighed sector Financials lost 0.87 percent as investors were worried about the interest rate hike by the U.S. Federal Reserve.

The insurance company Manulife Financial moved down 0.96 percent to 22.72 Canadian dollars and Toronto-Dominion Bank tumbled 1.24 percent to 55.69 Canadian dollars per share.

Other losers included Industrials and Health Care, down 1.06 percent and 0.64 percent.

The only gainer in the eight TSX sectors was Info Tech, up 0.44 percent, when the leading company Constellation Software Inc. jumped 1.81 percent to 516.26 Canadian dollars.

On the economic beat, Bank of Canada, the Canadian central bank will announce its decision for the benchmark interest rate Wednesday. And some market institutions have predicted that the central bank will hold the current rate level at 0.75 percent. Endite