- Banks, commodities lead drop in longest slump since February
- S&P/TSX tumbled 3.4% in five days to lowest since May 19
Canadian stocks slumped a fifth day, the longest losing streak in four months, as riskier assets retreated ahead of key central-bank meetings this week and Britain’s vote on its membership of the European union.
The S&P/TSX Composite Index tumbled 0.8 percent to 13,884.23 at 4 p.m. in Toronto, extending losses after opening little changed in the morning. The index has lost 3.4 percent over five days, the biggest drop over that stretch of time since Feb. 11.
Global stocks declined on Tuesday with the MSCI All-Country World Index posting its worst four days since January, as investors grow increasingly cautious on the looming Brexit vote and volatility ahead from U.S. elections and Federal Reserve rate decisions.
Canadian stocks have gained 6.7 percent this year, lifted by the rebound in commodity-sensitive producers. Raw material and energy producers have gained the most in the index year to date, posting advances of 42 percent and 14 percent respectively. That’s put the S&P/TSX within striking distance of beating New Zealand’s S&P/NZX 50 Index as the top performer in 2016 among developed nations.
Financial shares and raw-material producers contributed the most to declines on Tuesday. Royal Bank of Canada dropped 1.8 percent. The Bloomberg Commodities Index retreated for the third time in four sessions with base metals producers First Quantum Minerals Ltd. and Teck Resources Ltd. slumping more than 4.1 percent.
Energy producers slipped 0.6 percent as crude prices in New York dropped. Oil has fallen for four days. Global oil markets will be almost balanced next year as demand continues to rise faster than output, while the current oversupply is much smaller than previously thought, the International Energy Agency said.
Seven of 10 industries retreated in the S&P/TSX on trading volume 2 percent lower than the 30-day average. Telecommunications and health-care stocks led gains. Telus Corp, the telephone stock, rose 1.6 percent after it said it is buying back as much as 1.58 million shares through private agreements with a third-party seller.
Valeant Pharmaceuticals International Inc. rose 1.4 percent, ending the day higher after swinging between gains and losses. Valeant is working with advisers at Morgan Stanley as it weighs the sale of dermatology units to reduce debt and raise cash, according to people familiar with the matter. The embattled drugmaker also hosted its annual meeting. Valeant stock remains down more than 90 percent from an August peak.