Canadian stocks fell the most in two months as investors sold off some of the past year’s biggest gainers, including Redknee Solutions Inc., ATS Automation Tooling Systems Inc. and Avigilon Corp.
All three stocks fell more than 4 percent and are up at least 50 percent in the past 12 months. Valeant Pharmaceuticals International Inc. lost 4.5 percent after a joint venture with Swedish drugmaker Meda AB ended. Tweed Marijuana Inc. increased 40 percent on its second day of trading.
The Standard & Poor’s/TSX Composite Index slipped 122.77 points, or 0.9 percent, to 14,270.33 at the close in Toronto, the biggest intraday loss since Feb. 3. The benchmark index is up 4.8 percent for the year.
“This seems like a bit of profit-taking to me,” said Ian Nakamoto, director of research with MacDougall, MacDougall & MacTier Inc. in Toronto. The firm manages about C$4.7 billion ($4.3 billion). “Stocks that have done relatively well seem to be hit harder than those stocks that haven’t done so well.”
Oil and gas producing companies in the S&P/TSX fell 1.1 percent as a group. Brent crude fell for the first time in three days after Libyan rebels surrendered control of two oil ports to the government, enabling the OPEC country to increase exports. New York-traded oil for May delivery also snapped a two-day advance, losing 0.7 percent to $100.44 a barrel.
Industrial companies fell 1.6 percent, paced by declines in the country’s two major railroad stocks.
Canadian Pacific Railway Ltd. fell 2.5 percent to C$162.57. Canadian National Railway Co. fell 1.6 percent to C$60.47. Canadian Pacific is up 30 percent in the last year while Canadian National is up 23 percent.
Hudson’s Bay, a retailer that is Canada’s oldest company, fell 4 percent to C$17.08. The shares lost 5.1 percent on Apr. 3 after the company forecast lower earnings than analysts had predicted. Avigilon fell 4.8 percent to C$28.00. The company makes digital cameras for surveillance and has risen 149 percent over the last year. Redknee Solutions Inc. fell 4.1 percent to C$5.16. The software company is up 73 percent in the last year.
ATS, which makes machines used for manufacturing, fell 4.6 percent to C$14.60. The Cambridge, Ontario-based company has risen 50 percent over the last year. Badger Daylighting fell 1.7 percent to C$41.36. The Calgary-based excavation company is up 210 percent in the last year.
Valeant fell 4.5 percent to C$130.83. Meda said in a statement the joint-venture between the two companies would end in the second quarter because Meda had established its own affiliates in countries where it had up to now partnered with Valeant.
Tweed Marijuana jumped 40 percent to C$3.62. Based in a former chocolate factory in Smiths Falls, Ontario, Tweed grows medical marijuana as part of a government plan to replace a system where individual users have permits to grow their own cannabis.
Potash Corp. of Saskatchewan fell 1.9 percent to C$37.11 after the fertilizer miner said Bill Doyle, who has served as chief executive officer for almost 15 years, would leave the post in July.