Canada Stocks Fall as Gold, Energy Overshadow Rebound in China

Updated on

Canadian stocks fell, extending a January low, as declines in gold and energy companies erased an earlier rally sparked by the biggest rebound in Chinese equities since 2009.

Energy shares tumbled even as oil advanced after the biggest five-day decline in almost four years. Pacific Rubiales Energy Corp. plunged a record 46 percent after suitors Alfa SAB and Harbour Energy Ltd. dropped their plans to buy the company. Bombardier Inc. slumped 7.8 percent after a report said the struggling aircraft maker is re-evaluating the timeline for its largest business jets. Eldorado Gold Corp. and Kinross Gold Corp. lost more than 2.5 percent.

The Standard & Poor’s/TSX Composite Index fell 133.58 points, or 0.9 percent, to 14,278.49 at 4 p.m. in Toronto, erasing an earlier rally of as much as 1 percent. The benchmark Canadian equity gauge yesterday capped its second slide of at least 1.5 percent in the past two weeks, closing at a Jan. 20 low.

The Shanghai Composite Index rebounded 5.8 percent Thursday after plunging 7.1 percent in the past two days. The Chinese government has stepped up efforts to stem a rout in the country’s stock market amid growing concern of the country’s economic health. China is Canada’s largest trading partner after the U.S.

In Greece, Prime Minister Alexis Tsipras has until Thursday midnight to present a last-ditch plan that includes spending cuts to appease creditors and secure a new bailout for the country.

All 10 industries in the S&P/TSX retreated on trading volume 16 percent higher than the 30-day average today.

Bombardier sank 7.8 percent, for the lowest close since October 1993. Aviation International News reported the company is reviewing “all aspects” of its Global 7000 and Global 8000 business jets, including the schedule.

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