- Energy companies drop 3 percent, most since February
- Concordia International extends 10-day rout to 27 percent
Canadian stocks joined a selloff in global equities amid renewed weakness in energy prices and concern that central banks are losing their ability to stimulate the worldwide economy.
The S&P/TSX Composite Index fell 1.7 percent to 14,349.10 at 4 p.m. in Toronto, the lowest close since July 8. The retreat follows a rout on Friday that capped the worst weekly decline since May. The benchmark for Canadian equity trimmed its gain in 2016 to 10 percent.
All 10 major industries retreated Tuesday, with energy companies leading the decline as the group lost 3 percent, the worst in seven months. Crude in New York slid below $45 a barrel after the International Energy Agency said it expects a supply glut to persist for longer. None of the industry’s 49 members advanced. Canadian Natural Resources Ltd. dropped 3.6 percent, while Baytex Energy Corp. and Bonavista Energy Corp. tumbled at least 7.6 percent, the most for each since June.
Canadian Prime Minister Justin Trudeau plans to approve at least one new oil pipeline project in his first term, with U.S.-based Kinder Morgan Inc.’s Trans Mountain expansion to the Pacific Coast the most likely candidate, according to people familiar with his plans.
Raw-materials companies fell 2.9 percent, led by declines of at least 6 percent for First Quantum Minerals Ltd., OceanaGold Corp. and Iamgold Corp. The group is down about 12 percent since reaching a three-year high on Aug. 10, paring a gain this year to 46 percent. That’s still the most since 1993.
Health-care shares sank 2.5 percent to the lowest level in almost a month, as Concordia International Corp. extended a 10-day rout, its longest ever, to 27 percent. Valeant Pharmaceuticals International Inc. fell 2.8 percent.
Financial stocks declined 0.9 percent, extending a six-day selloff to 2.1 percent, as investors remained on edge over central banks’ ability to bolster growth. Toronto-Dominion Bank slipped 1.1 percent, while real-estate companies in the benchmark index retreated 1.3 percent to a four-month low. Financial firms account for about one-third of the Canadian market by capitalization.