Canadian stocks fell a second day as raw-material and energy producers slumped after copper dropped and crude prices tumbled to a five-month low.
BlackPearl Resources Inc. and Legacy Oil & Gas Inc. (LEG) lost at least 1 percent as the price of crude declined for the first time in three days on rising U.S. inventory forecasts. Air Canada, the best-performing Canadian stock this year, climbed 4.6 percent for a fourth day of gains. Teck Resources Ltd. and Lundin Mining Corp. dropped more than 2.6 percent as copper prices slid.
The Standard & Poor’s/TSX Composite Index (SPTSX) fell 32.35 points, or 0.2 percent, to 13,326.04 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has advanced 7.2 percent this year, the third-worst performance among global developed markets, ahead of Hong Kong and Singapore.
“People are staying away from taking drastic positions before the year-end,” said Brian Huen, managing partner with Red Sky Capital Management Ltd. in Toronto. The firm manages about C$220 million. “There’s a lot of different views developing on what tapering will look like from the Fed, so more people are talking about tapering in December. A lot of people are clearly watching for that.”
Global equities have rallied this year as the U.S. Federal Reserve refrained from curbing its $85 billion in monthly asset purchases. Economists forecast the central bank will delay tapering its asset purchases until March.
Bonterra Energy Corp. (BNE) lost 3.6 percent to C$54.95, the most since April, after the company reported third-quarter production declined 6.6 percent compared with the previous quarter.
BlackPearl Resources lost 1 percent to C$1.91 and Legacy Oil & Gas retreated 3.4 percent to C$6.53 as crude for December delivery declined 2.2 percent to $93.04 in New York, the lowest since May 31.
Bombardier Inc., the world’s third-largest planemaker, dropped 2.4 percent to C$4.53 for a second day of losses. The stock sank 10 percent on Oct. 31 for the biggest decline in more than four years after posting a quarterly profit that missed analysts’ estimates.
Wi-Lan Inc. (WIN) rose 3 percent to C$3.44 and CGI Group Inc. added 2.7 percent to C$37.11 as technology stocks added 1.1 percent as a group in the S&P/TSX.
Six of 10 industries advanced in the benchmark Canadian equity gauge on trading volume in line with the 30-day average.
National Bank of Canada added 1.1 percent to C$92.52, a record high, to pace gains among Canada’s largest lenders.
Air Canada, the nation’s largest airline, increased 4.6 percent to C$6.90, extending a five-year high. The stock has surged 27 percent in the past four days. The carrier reported third-quarter profit on Nov. 8 that beat analysts’ estimates amid progress in its cost-cutting plan.
Air Canada is the top-performing stock in the S&P/TSX this year with a 294 percent gain.
Teck Resources, the nation’s largest diversified miner, dropped 2.6 percent to C$27.34 and Lundin Mining retreated 2.8 percent to C$4.58 as copper fell in New York. Output in China, the world’s largest user of the metal, increased 23 percent in October to a monthly record.
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