Canadian Stocks Resume Slide, Tracking Drops in Crude and Metals

  • Index maintains decline, tumbles for sixth time in seven days
  • Commodities companies tumble as gold reverses earlier gains

Canadian stocks slid for the sixth time in seven days, erasing Wednesday’s gain as commodity producers followed crude-oil and metals prices lower.

The S&P/TSX Composite Index fell 0.3 percent to 13,882.41 at 4 p.m in Toronto, paring an earlier 0.8 percent retreat as U.S. stocks rebounded amid diminished odds Britain will elect to leave the European Union. Seven of the gauge’s 10 main industries declined. Gold prices slumped after touching a nearly two-year high, dragging down raw-materials companies which erased an earlier 2 percent advance. The benchmark has slumped 3.4 percent since hitting a 10-month high on June 7.

The S&P 500 Index wiped out all of a 1 percent drop, while futures on the Euro Stoxx 50 gained amid a steady intraday easing in bookmaker odds for the U.K. exiting the EU. Campaigning for the Brexit referendum was suspended by both sides after Labour Party lawmaker Jo Cox was murdered as she met constituents in her district.

Shares of health-care companies led the decline in Canada’s market, falling 3.4 percent to the lowest since December 2010. Valeant Pharmaceuticals International Inc. tumbled again, losing 5.1 percent to bring its two-day decline to 6.2 percent.

After rising as much as 2.1 percent earlier in the day to briefly touch a 16-month high, raw-materials stocks tumbled along with gold prices to close 1.4 percent lower. OceanaGold Corp. soared to an all-time high before closing 0.9 percent lower. Kinross Gold Corp. and Alamos Gold Inc. both tumbled at least 4.1 percent, the most in about four weeks.

As oil prices slumped, so did energy stocks with the group sinking 0.8 percent. Cenovus Energy Inc. lost 3.6 percent to a two-month low, while Surge Energy Inc. and Baytex Energy Corp. both fell at least 5.5 percent. West Texas Intermediate crude futures declined 3.8 percent in New York, capping the commodity’s longest losing streak since February, as concerns mounted that the world economy is losing strength.

Financials snapped a six-day selloff, rising 0.2 percent led by a rally of 1.3 percent for Dream Office Real Estate Investment Trust. Meanwhile, phone companies added to a three-day rally of 1.9 percent as Roger Communications Inc. jumped 1.6 percent, the most since February.

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