Canadian Stocks Decline on Oil Slump Amid Spain Crisis
Canadian stocks fell for the first time in six days as crude tumbled and commodities retreated over concern the debt crisis in Europe is worsening.
Cenovus Energy Inc. (CVE) lost 1.2 percent and RMP Energy Inc. (RMP) declined 6.3 percent. Bank of Nova Scotia, the third-largest lender in the country, dropped 0.9 percent. Kinross Gold Corp. (K) rose 1.1 percent as gold advanced in New York. Energy companies and banks contributed the most among 10 industries to the decline of the Standard & Poor’s/TSX Composite Index. (SPTSX)
The S&P/TSX fell 42.79 points, or 0.4 percent, to 11,622.91. The benchmark index rose 0.9 percent this week and has lost 2.8 percent in 2012.
“Trading is really driven by concerns in Europe today,” Jeffrey Bradacs, who manages C$1.7 billion at Toronto-based Manulife Asset Management, said in a phone interview. “There are lagging concerns with Spain’s debt costs continuing to increase, and the oil price, as a result, has been volatile. Today is about risk-off trade.”
Oil declined 1.3 percent in New York, snapping seven days of gains to settle at $91.44 a barrel on the New York Mercantile Exchange. Spain said the recession will extend into next year as the region of Valencia prepared to seek a rescue from the central government and European finance ministers approved the bailout of Spanish banks.
The S&P GSCI gauge of commodities slipped 0.4 percent. Suncor Energy Inc. (SU), the nation’s largest oil company, lost 0.4 percent to C$30.46. Cenovus declined 1.2 percent to C$32.54. Imperial Oil Ltd., the nation’s second-largest energy provider, retreated 0.3 percent to C$43.69. RMP Energy, the Calgary-based oil and gas producer with sites in Alberta, declined 6.3 percent to C$1.78.
Bank of Nova Scotia dropped 0.9 percent to C$52.15. Royal Bank of Canada (RY), the country’s largest lender, slipped 0.5 percent to C$52.41. Toronto-Dominion Bank (TD), the second-largest lender, fell 0.6 percent to C$80.
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