Canada Stocks Fall a 2nd Day as Oil Drops, Greek Talks Continue

Updated on

Canadian stocks fell a second day, paring a weekly advance, after oil extended losses below $60 a barrel and an equity rout in China deepened while investors awaited a resolution to Greek debt talks.

TransCanada Corp. retreated 3 percent to pace declines among energy stocks. Valeant Pharmaceuticals International Inc. retreated 1.9 percent after a report the drugmaker had approached animal health company Zoetis Inc. about a takeover. Potash Corp. of Saskatchewan Inc. fell 1.8 percent amid its pursuit of German K+S AG.

The Standard & Poor’s/TSX Composite Index fell 89.41 points, or 0.6 percent, to 14,808.09 at 4 p.m. in Toronto. The gauge has risen 1.1 percent this week after four straight declines.

Surge Energy Inc. dropped 4.1 percent and TransCanada lost 3 percent as energy companies fell 1.2 percent. All 10 industries in the S&P/TSX retreated on trading volume 14 percent lower than the 30-day average.

Pacific Rubiales Energy Corp. tumbled 5.6 percent. The two companies seeking to acquire it said Thursday the price for their joint bid was justified given the difficulties Pacific Rubiales would face surviving as an independent company.

The Shanghai Composite Index plunged 7.4 percent,the most in five months, leaving the benchmark on the cusp of a bear market. China’s stock market has plunged from first to worst on global performance rankings as leveraged speculators unwind their positions and a growing number of analysts warn that valuations have climbed too far. China is Canada’s second-largest trading partner after the U.S.

Investors are also monitoring the situation in Europe. Greece’s creditors have proposed a five-month program extension and 15.5 billion euros ($17.3 billion) of funding that would extend the country’s bailout program through November, a European official told reporters in Brussels. A Greek government news agency later reported the deal was rejected.

Potash Corp. slipped 1.8 percent. The Canadian fertilizer producer is pursuing K+S, though the German potash supplier is likely to reject the offer as the bid is too low, according to people familiar with the matter.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE