Canadian stocks down as UK votes to quit EU

 Canada's main stock market in Toronto took a nosedive on Friday after Britain voted to leave the European Union, but gold miners gained as investors fleeing to the safety of bullion.

The Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite Index lost 239.50 point, or 1.69 percent, to close at 13,891.88 points. Seven of the TSX index's eight main sub-sectors were lower.

Crude oil prices settled 5 percent lower on Friday after Britain's vote to leave the EU spurred massive risk aversion and a rally in safe havens like the U.S. dollar that threatened to cut short a three-month-long recovery in global oil markets.

The West Texas Intermediate for August delivery fell 2.47 U.S. dollars to settle at 47.64 dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery decreased 2.5 dollars to close at 48.41 dollars a barrel on the London ICE Futures Exchange.

TSX energy and mining sectors were down 3.15 percent and 6.71 percent respectively, as First Quantum Minerals Ltd. plummeted 9.97 percent to 8.85 Canadian dollars (6.81 U.S. dollars) while Baytex Energy Corp. plunged 7.84 percent to 7.05 Canadian dollars.

However gold miners surged, as investors piled into bullion, considered a lower risk asset to hold in times of uncertainty.

Barrick Gold jumped 7.94 percent to 26.65 Canadian dollars, and B2Gold Corp. rocketed 12.23 percent to 3.12 Canadian dollars.

Financials lost 2.97 percent, with Royal Bank of Canada down 3.11 percent at 77.21 Canadian dollars and Manulife Financial slumping 7.42 percent to 17.35 Canadian dollars.

Canadian Prime Minister Justin Trudeau said Canada is well positioned to weather global market uncertainty in the wake of the United Kingdom's dramatic decision to leave the EU.

Trudeau said Canada shares deep historical ties and common values with the U.K. and the EU, and will continue to build relationships with both as they forge a new relationship of their own.

The Canadian dollar traded lower at 0.7693 U.S. dollar, compared with Thursday's closing rate of 0.7789 U.S. dollar.

source : xinhua