Canadian Stocks Retreat as Raw Material Shares Slide
Canadian stocks fell after posting the biggest gain in three months yesterday as home resale prices slid for a fifth month and metal prices dropped.
Aurizon Mines Ltd. and China Gold International Resources Corp Ltd. decreased at least 2.6 percent as gold futures fell to a six-month low. Industrial Alliance Insurance & Financial Services Inc. lost 4.5 percent after Canaccord Genuity Corp. cut the insurer to hold from buy. Semafo Inc., which operates three gold mines in West Africa, gained 2.5 percent as Goldman Sachs Group Inc. recommended buying the shares.
The Standard & Poor’s/TSX Composite Index dropped 27.22 points, or 0.2 percent, to 12,782.99 at 10:38 a.m. in Toronto. The S&P/TSX has risen 2.8 percent this year.
Canadian home resale prices fell for a fifth straight month in January, the longest string of declines since the country’s 2009 recession, according to the Teranet-National Bank Composite House Price Index. Government data in the U.S. showed builders broke ground on the most single-family homes in more than four years.
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