Canadian stocks fell the most since November, snapping a three-day advance in the benchmark index, as energy and raw-materials shares dropped after oil and gold prices slumped.
Encana Corp. and Savanna Energy Services Corp. lost more than 1.2 percent after the International Energy Association cut its 2013 global demand estimate for oil and U.S. inventories unexpectedly rose. New Gold Inc. and Iamgold Corp. slid at least 5.5 percent as gold fell for the first time in five days. BlackBerry gained 11 percent after receiving the biggest order in its history.
The Standard & Poor’s/TSX Composite Index declined 134.49 points, or 1 percent, to 12,744.11 at 4 p.m. in Toronto. The gauge has gained 2.5 percent this year and closed yesterday at its highest level since July 2011. Trading volume was 5.1 percent lower than the 30-day average.
“Certainly we had a larger-than-expected build in crude-oil inventories, so that’s a negative,” Peter Buchanan, Toronto-based senior economist at CIBC World Markets, said in a telephone interview today.
Raw-materials stocks fell the most in the S&P/TSX, losing 2.1 percent as a group. Energy producers slid 1.2 percent, as eight of the gauge’s 10 groups retreated.
Iamgold fell 8.9 percent to C$6.86 and New Gold dropped 5.5 percent to C$9.48. Gold declined 0.2 percent to settle at $1,588.40 an ounce in New York.
Bullion ended its longest rally since August after a deputy Chinese central bank governor said the country may limit its gold holdings to 2 percent of total foreign exchange reserves. A better-than-estimated U.S. retail sales report increased optimism about the world’s largest economy and the dollar rose.
Savanna, a provider of oil-well and drilling services, slid 3.3 percent to C$6.75, its lowest since December. Encana dropped 1.2 percent to C$19.50. TransCanada Corp. fell 1.7 percent to C$48.20 after Canadian heavy oil weakened on the spot market after strengthening more than $10 a barrel in the previous six days.
Oil erased gains after the Energy Information Administration said U.S. inventories climbed an eighth straight week. Earlier, Paris-based IEA trimmed its 2013 global demand forecast by 60,000 barrels a day to 90.6 million. Crude fell 2 cents to settle at $92.52 a barrel on the New York Mercantile Exchange, after reversing an advance of as much as 0.9 percent.
BlackBerry, formerly known as Research In Motion Ltd., surged 11 percent to C$16.45, the highest in a month. The company said one of its “established partners” placed an order for 1 million of its new BlackBerry 10 smartphones.