Canadian media stocks take hit as int’l markets slide

The big four - BCE, Shaw, Rogers and Corus - posted sharp declines Monday morning.
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Canada’s big four media and communications companies were not immune from the global stock market slide triggered on Monday.

Early financial reports showed the S&P/TSX index dropping 700 points (5%) as the markets opened Monday, but rebounded as the morning went on. As of mid-morning, the index was down 269 points (2%). The TSX news service called the early-morning slide “monumental.”

On Monday morning, three out of Canada’s major media companies on the index posted drops of over 3%, sharp declines over previous performance through the year.

As of 11 a.m. Monday, Rogers Communications had rebounded $45.90, a 2.13% drop, up from a 3.26% decline earlier on. BCE was similarly down 3.26% to $52.87 and Corus Entertainment took at 3% hit ($12.60). Shaw Communications was the outlier, dropping 1.5% to $26.11.

Global stock markets went into sharp declines early Monday, as fears about a declining Chinese economy rattled investors.

Media stocks in the U.S. have been under fire for two weeks now, since concerns about ESPN’s financial performance emerged during a Disney investor call. Major stocks like Disney, Time Warner and CBS were all down early Monday.

The Canadian dollar also fell, trading at 75.32 cents.

From Playback Daily