- Raw-material shares tumble to the lowest level three weeks
- Equity index heads for second weekly gain before holiday
Canadian stocks retreated for a third day as slumping commodity prices amid a rising U.S. dollar continued to drag down shares in energy and raw-materials producers.
The Standard & Poor’s/TSX Composite Index fell 0.6 percent to 13,296.67 at 10:22 a.m. in Toronto. The benchmark gauge has lost 1.5 percent in the holiday-shortened week and is heading for the lowest close in three weeks. The index remains one of the top performers among developed markets this year with a gain of 2.2 percent.
Trading was 29 percent below the 30-day average at this time of day, continuing a stretch of light volume. Exchanges are closed tomorrow for the Easter holiday.
Sinking commodity prices from oil to gold to copper hit the resource-rich index Thursday, as a rally in the U.S. dollar sent assets denominated in the greenback tumbling. Valeant Pharmaceuticals International Inc. slipped 3.7 percent to halt a three-day rally that added 26 percent to shares in the embattled drugmaker. Bank shares also retreated Thursday.
Canadian stocks have rebounded 12 percent after hitting a 2 1/2-year low in January and notching one of the worst declines among developed markets last year. The index is now trading at 21 times earnings, about 15 percent more expensive than the valuation of the U.S. equity benchmark, the Standard and Poor’s 500 Index, data compiled by Bloomberg show.