The rout in Canadian energy producers worsened amid concern the global supply glut will persist, sending the nation’s benchmark stock index to a third day of losses.
Energy stocks tumbled to an April 2009 low and a seventh day of losses as an unexpected increase in U.S. crude stockpiles sent oil prices deeper into a bear market. West Texas Intermediate in New York tumbled 4.3 percent to the lowest level in more than six years.
Stocks also fell amid increasing anxiety over deteriorating overseas markets. The selloff gripping emerging markets isn’t letting up as stocks drop to four-year lows and countries including Vietnam and Kazakhstan weaken their currencies to adjust to the fallout from China’s devaluation.
The Standard & Poor’s/TSX Composite Index fell 157.24 points, or 1.1 percent, to 14,036.63 at 4 p.m. in Toronto, the biggest decline since July 27. The benchmark Canadian equity gauge has fallen 4.1 percent this year.
Crescent Point Energy Corp. fell 6.7 percent and Baytex Energy Corp. sank 17 percent as energy stocks retreated 3.5 percent as a group, the most since January. Oil plunged as the Energy Information Administration said U.S. crude supplies rose 2.62 million barrels last week. An 820,000 barrel stockpile decline was projected by analysts surveyed by Bloomberg.
Commodities producers are the worst-performing industries in the S&P/TSX this year with energy producers pacing declines with an 18 percent drop. Crude has slumped more than 30 percent from this year’s June peak and metals from copper to gold have declined amid concern global growth is slowing.
Bombardier Inc. lost 2.5 percent, extending a 1991 low. The struggling aerospace manufacturer has slumped for five sessions and is the second-worst performing stock in the S&P/TSX this year with a 71 percent slide.