Commodities Fall as Markets Waver
Morning Market Breakdown, April 23: As the markets tossed and turned between red and green, precious metals saw losses Monday morning.
The S&P/TSX Composite Index (INDEXTSI:OSPTX) stayed in the green until close on Friday (April 20) as it grew 29.9 points to end the day at 15,484.32.
It got a kickstart on Monday (April 23) with gains of 49.33 points to reach 15,533.65.
The S&P/TSX Venture Composite Index (INDEXTSI:JX) made a small recovery of 2.86 points on Friday to close at 804.96. It didn’t take long for it to lose 2.45 points to 802.51 on Monday.
The TSX’s telecom subgroup led the way on Friday as it gained 2.5 percent as a whole, with much of the credit going to Rogers Communications (TSX:RCI.B), the index’s top gainer at 5.9 percent. The company saw its share price soar after two brokerages raised their price targets.
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However, the TSX cut back on its gains after energy fell 0.8 percent, healthcare dropped 0.7 percent and materials lost 0.3 percent.
The Dow Jones Industrial Average (INDEXDJX:.DJI) took a hard hit on Friday as it closed at 24,462.94, down 201.95 points. It began to bounce back on Monday morning as it grew to 24,493.97 with a 31.03-point boost.
The S&P 500 (INDEXSP:.INX), which broke below its 50-day moving average, dropped 22.99 points to close Friday at 2,670.14. Monday morning it got a small boost of 4.55 points when the index reached 2,674.69.
Apple (NASDAQ:AAPL) dragged down the Dow Jones on Friday as its worst-performing stock after Morgan Stanley (NYSE:MS) said iPhone sales for the June quarter will be a letdown. This news brought the tech giant’s share price down 4.1 percent. Meanwhile, Apple’s struggle radiated through the tech sector, which fell 1.5 percent as a whole.
Note: All numbers shown above were accurate as of 10:00 a.m. EST.
Daily metals
Gold skidded to Friday’s close as it reached US$1,338.30 per ounce. It continued to slide on Monday as it hit US$1,325.70. Silver fizzled on Friday as it fell to US$17.16 per ounce. The commodity continued to struggle on Monday as it fell past the $17 mark and landed at US$16.71.
Copper stayed steady on Friday as it closed at US$3.15 per pound. It continued to hold on Monday as it maintained its numbers at US$3.13.
Major miner news
- Tahoe Resources (TSX:THO,NYSE:TAHO): A labor strike commenced at Tahoe’s La Arena mine in Peru on Friday, according to a press release. The strike revolves around the La Arena Union, which makes up 65 percent of the site’s workforce. The union has stated that its members want higher profit sharing than they are currently entitled to by Peruvian labor law.
- Agnico Eagle Mines (TSX:AEM,NYSE:AEM): As of Friday, the company disposed of over 44.5 million common shares of Belo Sun Mining (TSX:BSX), with each common share priced at C$0.335. The aggregate proceeds totaled over C$14.9 million, with Agnico completing the sale “in order to monetize a non-core asset held in its portfolio.”
- Sabina Gold & Silver (TSX:SBB): The company finalized an agreement with the Kitikmeot Inuit Association (KIA) with regard to its Back River project in Nunavut. Key provisions under the framework agreement include the association’s consent to Sabina’s operations and explorations, along with confirmation that KIA has been adequately consulted about the project.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
