A Tragic Day

Resource companies take the brunt of lower than expected Chinese growth.

Iain Butler ❯

Chief Investment Advisor, Motley Fool Canada Fool since November 2012 Iain Butler, CFA, is Lead Advisor on Discovery Canada 2017. He is also the Chief Investment Advisor for Motley Fool Canada and is the lead advisor on its flagship Stock Advisor Canada product. Before joining the Fool, Iain was a “buy-side” analyst and through this experience is well-versed in the idiosyncratic ways of the Canadian market. His investing interests are centred on scouring the market for interesting businesses that trade at reasonable prices and offer an appealing risk/reward relationship. Since joining the Fool in 2012, Iain dedicates each day to spreading Foolishness throughout this great country!

Published April 15, 2013 4:53 pm EDT

What started as a tough day for financial markets truly turned into something tragic with the explosions that occurred at the finish line of the Boston Marathon. Deepest sympathies to the victims and their families.

As expected from the moment that the Chinese GDP data hit the wire, the Canadian market was a disaster today. The S&P/TSX Composite fell by 333 points or 2.7%. After holding in relatively well through the morning, the U.S. also went into free-fall throughout the afternoon with the S&P 500 finishing down 2.3%.

Resource companies were the biggest drag on the Canadian index. Barrick Gold (TSX:ABX,NYSE:ABX) and Goldcorp (TSX:G,NYSE:GG) were two of the four biggest detractors, combining for .24% of the market’s fall. The stocks were down 11.5% and 5.6% respectively. Barrick now trades below its last reported book value for the first time in the company’s history. Spot gold closed at $1,346.29/oz for a decline of 9.2%.

Suncor (TSX:SU,NYSE:SU) and Canadian Natural Resources (TSX:CNQ,NYSE:CNQ) rounded out the “bottom” four. Each was down 4.6% as the price of WTI oil settled in 3.3% lower. Suncor also announced today that it has sold its natural gas assets for $1 billion and is now essentially a pure-play oil company.

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Fool contributor Iain Butler is short $32 July 2013 put options on Goldcorp and owns shares in Barrick Gold. The Motley Fool has no positions in the stocks mentioned above.