Canadian stocks fell the most since February, retreating from a record, amid a global selloff as Argentina missed a payment on its bonds while gold and oil prices tumbled.
Valeant Pharmaceuticals International Inc. sank 6.7 percent after cutting its year-end earnings forecast amid its hostile pursuit of Botox-maker Allergan Inc. Shaw Communications Inc. retreated 2.8 percent after agreeing to buy cloud services provider ViaWest Inc. for $830 million. Agnico Eagle Mines Ltd. tumbled 8.7 percent after analysts at Bank of Montreal and Desjardins cut their ratings for the stock.
The Standard & Poor’s/TSX Composite Index fell 194.09 points, or 1.3 percent, to 15,330.73 at 4 p.m. in Toronto. The benchmark Canadian equity gauge closed at 15,524.82 yesterday, an all-time high. This is the first time the measure has risen or fallen by 1 percent or more since April 16.
The S&P/TSX advanced 1.2 percent this month for a second straight gain, and is the second-best performer in the world among developed markets this year.
Canada’s gross domestic product jumped 0.4 percent in May, the fastest pace in four months, as car makers ramped up production. The fifth straight monthly gain matches the median forecast in a Bloomberg economist survey.
The MSCI All-Country World Index, which tracks both developed and developing markets, fell 1.5 percent, the largest decline since February and the lowest close since June 4. The S&P 500 sank 2 percent, the most since April, and the Dow Jones Industrial Average erased its gains for the year.
Argentina missed a deadline yesterday to pay $539 million in interest after two days of negotiations in New York failed to produce an agreement with creditors from its last default in 2001. Portugal’s Banco Espirito Santo said it needs to raise capital after a first-half loss and companies from Adidas AG to Lufthansa AG said unrest in Russia and Ukraine dimmed prospects for growth.
Agnico Eagle sank 8.7 percent to C$40.54, the most since October 2011, to pace declines among raw-materials producers as nine of 10 industries in the S&P/TSX retreated on trading volume 25 percent higher compared with the 30-day average.
Alamos Gold Inc. retreated 5.4 percent to C$9.70 and Semafo Inc. lost 3.5 percent to C$4.70 as gold futures fell 1.1 percent to $1,282.80 an ounce in New York, a six-week low.
First Quantum Minerals Ltd. dropped 4.3 percent to C$25.86 after yesterday reporting earnings and revenue short of analysts’ estimates.
Talisman Energy Inc. fell 3.5 percent to C$11.44 and Bankers Petroleum Ltd. slumped 4.1 percent to C$6.16 as 63 of 69 members of the S&P/TSX Energy Index declined. The gauge slumped 1.7 percent, the most in a month.
Crude in New York fell to a four-month low, capping a monthly loss of 6.8 percent, the biggest in two years.
Open Text Corp. surged 15 percent to a record C$60.67 after the company posted profit ahead of estimates as revenue from cloud computing more than tripled from year-ago figures.