Canada Stocks Slump a 7th Day in Worst Losing Streak in 4 Years

Updated on

Canadian stocks fell a seventh day, the longest losing streak in four years, amid growing concern the global economy is stalling after Chinese shares slumped the most in eight years.

Sherritt International Corp. and First Majestic Silver Corp. plunged at least 12 percent as copper slid to a six-year low to lead a retreat in base metals. Bankers Petroleum Ltd. and Enerplus Corp. tumbled more than 10 percent as energy stocks extended an April 2009 low. Restaurant Brands International Inc., owner of the Tim Hortons and Burger King franchises, jumped 3.9 percent as chicken fries helped sales.

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. The Bloomberg Commodity Index of 22 raw materials dropped 1.2 percent for a fourth day of declines to a 13-year low.

The Standard & Poor’s/TSX Composite Index fell 184.87 points, or 1.3 percent, to 14,001.37 at 4 p.m. in Toronto. The gauge has fallen 10 percent from an all-time record on Sept. 3 and is 9.4 percent below an April 15 high.

China’s Shanghai Composite Index plunged 8.5 percent, the biggest slump since February 2007. Monday’s retreat shattered the sense of calm that had fallen over mainland markets after stocks had earlier rallied on unprecedented government intervention.

The MSCI All-Country World Index, which includes emerging markets, lost 0.9 percent for a fifth day of declines. The benchmark S&P 500 lost 0.6 percent in New York and the Stoxx Europe 600 Index sank 2.2 percent.

Royal Bank of Canada dropped 1.4 percent and Encana Corp. declined 5.8 percent as financial services and energy industries lost at least 1.6 percent. Raw-materials producers crumbled 3.1 percent, to a December 2008 low. Nine of 10 groups in the S&P/TSX retreated on trading volume 13 percent higher than the 30-day average.

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