Canada Stocks Drop as Commodities Slump on China Concern
Argonaut Gold Inc. dropped 1.7 percent as precious metals prices declined. BlackPearl Resources Inc. (PXX) sank 6.6 percent after selling shares to raise cash. Bank of Montreal climbed 0.3 percent after reporting profit that surpassed estimates. BlackBerry Ltd. jumped 7.6 percent after Chief Executive Officer John Chen said he would consider selling the company’s BlackBerry Messenger service.
The Standard & Poor’s/TSX Composite Index (SPTSX) fell 41.06 points, or 0.3 percent, to 14,185.48 at 10:04 a.m. in Toronto. The benchmark equity gauge has advanced 4.1 percent this year.
The index is 0.6 percent below its peak of 14,270.53 reached on April 5, 2011, the highest level since June 2008. Raw-materials stocks in the S&P/TSX have soared 18 percent this year to drive the rally.
Oil and metals from copper to silver retreated today amid concern that the weakening Chinese yuan and curbs on real-estate lending will lead to lower demand from the biggest consumer of commodities.
To contact the reporter on this story: Eric Lam in Toronto at firstname.lastname@example.org
To contact the editor responsible for this story: Lynn Thomasson at email@example.com