Tuesday, February 27, 2007
The Toronto Stock Exchange experienced one of its biggest one-day point losses in the wake of a major (9%) stock sell-off in China. The S&P/TSX Composite Index dropped 2.7%, falling 364 points eventually ending the day at 13,040. Despite this ‘dramatic’ drop, the main Toronto index is still above where it was eight weeks prior at the end of 2006.
It was the biggest one-day percentage drop since April 2004. At its worst point, the index was down 457 points. Every sector was in negative territory, with resource stocks leading the charge down.
Recently, the TSX set seven record highs in nine trading sessions. Its benchmark index doubled since October 2002 as well as experienced a steady rise in commodity prices. The New York Stock Exchange (NYSE) witnessed even larger drops; the Dow Jones Industrial Average saw a loss of 3.3%, fallling 416 points, making it its worst day in almost four years. At its lowest point of the day it dropped 4.3%, falling 550 points. The Nasdaq composite index dropped similarily 96 points to 2,432 for a 3.8% loss.
In total, 498 of the 500 U.S. companies represented in the S&P 500 index fell including all 30 Dow stocks.