Canadian Stocks Fall as Materials Drop Overshadows Deal Activity

Canadian stocks fell as declines among gold producers and banks overshadowed rallies in Paladin Labs Inc. and Open Text Corp. (OTC) fueled by deal activity.

Iamgold Corp. dropped 3 percent as the metal’s price held near the lowest in two weeks. Paladin, a Canadian drug company, surged 51 percent to a record high after agreeing to be bought by Endo Health Solutions Inc. Open Text jumped 8 percent after agreeing to acquire a technology consulting firm. Encana Corp. rose 4.4 percent as it plans to cut its workforce, lower its dividend and sell shares in an initial offering for one of its assets to boost cash flow.

The Standard & Poor’s/TSX Composite Index (SPTSX) slid 41.88 points, or 0.3 percent, to 13,319.90 at 9:58 a.m. in Toronto. The benchmark Canadian equity gauge has advanced 7.1 percent this year, the third-worst performer in the world among developed markets, ahead of Hong Kong and Singapore.

To contact the reporter on this story: Eric Lam in Toronto at elam87@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net

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