Canada Stocks Drop to Six-Month Low as Commodity Slump Persists

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Canada’s commodity problems continued, as energy and mining stocks resumed slides that sent the nation’s benchmark index to a fifth day of losses.

Trilogy Energy Corp. sank 6.3 percent as energy producers extended a 2009 low with U.S. crude collapsing into a bear market. First Quantum Minerals Ltd. lost 8.1 percent to lead a 2.8 percent drop in mining stocks. Rogers Communications Inc. jumped to a five-month high and Loblaw Cos. rallied amid earnings. Valeant Pharmaceuticals International Inc. surged 5.7 percent, overtaking Royal Bank of Canada as the nation’s largest company by market value.

Producers of energy and raw materials, which account for about 30 percent of the equity benchmark, are the worst-performing stocks in Canada this year amid a rout in commodities on concern global economic growth is slowing. The Bloomberg Commodity Index of 22 raw materials dropped 1 percent for a second day of declines, extending a 13-year low.

The Standard & Poor’s/TSX Composite Index fell 41.75 points, or 0.3 percent, to 14,265.37 at 4 p.m. in Toronto, a January low. The gauge has fallen 3.3 percent during its current five-day slide. The gauge is now lower by 2.5 percent on the year.

Seven of 10 industries in the S&P/TSX dropped on trading volume 22 percent higher than the 30-day average today. Raw-materials producers traded at a December 2008 low.

Companies in the benchmark equity gauge are expected to report a 39 percent slump in earnings per share in the latest earnings season, the worst in six years, according to data compiled by Bloomberg. More than 200 companies in the S&P/TSX are set to report earnings by the end of August.

Among stocks moving on results Thursday, Valeant climbed 5.7 percent and Loblaw gained 3.4 percent, to a 10-year high, after the companies reported better-than-forecast earnings. Superior Plus Corp. sank 12 percent, the most since 2011, after disclosing preliminary second-quarter results worse than year-ago figures.

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