- Goldcorp slips after agreeing to share-swap deal for Kaminak
- Oil settles at six-month high as market weighs global supply
Canadian stocks ended the day flat, as a retreat by natural-resource producers was offset by gains in energy after crude settled at a six-month high. Oil rebounded amid signs of a reduction in global supply while Canadian oil-sands production is coming back online.
The benchmark S&P/TSX Composite Index lost less than an index point to 13,787.80 at 4 p.m. in Toronto, erasing an earlier advance of as much as 0.7 percent. Four of 10 industries in the S&P/TSX declined. Volume was 4.9 percent lower than the 30-day average. The gauge now trades at 20.9 times earnings, about 9.3 percent higher than the 19.2 times valuation of the S&P 500, data compiled by Bloomberg show.
Crescent Point Energy Corp. jumped 4.9 percent for a third day of gains. The company reported a first-quarter loss narrower than analysts had forecast. Energy producers ended higher after swinging between gains and losses.
Oil futures in New York swung between gains and losses, adding 47 cents to settle at $46.70 a barrel for a six-month high. Nigeria said militants have curbed the country’s oil output by about 30 percent, while Canadian oil-sands producers are starting the process of resuming operations after wildfires around Fort McMurray in Alberta disrupted production in the past week.
Raw-materials producers slumped 1.8 percent, the second-most in the S&P/TSX. Barrick Gold Corp. lost 1.9 percent while First Quantum Minerals Ltd. retreated 5.3 percent to lead base-metals producers lower. Gold futures fell as the dollar rose after trading little changed against a basket of 10 currencies. The greenback strengthened against the yen amid speculation of further monetary easing by the Bank of Japan.
Goldcorp Inc. tumbled 3.9 percent after agreeing to buy Kaminak Gold Corp. in a share-swap deal worth C$520 million ($406 million). The purchase price values Kaminak at a 40 percent premium to its 20-day average, and will involve Goldcorp issuing about 21.6 million shares.
Health-care stocks lagged the most as Valeant Pharmaceuticals International Inc. dropped 5.6 percent. The stock has slumped 30 percent during a seven-day slide, the longest losing streak for the embattled drugmaker in almost two years.
Valeant’s new CEO Joseph Papa was criticized by the leader who took over his previous company. As well, most U.S. hospitals are not receiving promised discounts of as much as 30 percent for two heart medications that have seen steep price increases, despite Valeant pledging to Congress to do so, the New York Times reported.