Canadian Stocks Tumble for Second Day Amid Plunge in U.S.Gerrit De Vynck
Canadian stocks fell for a second day, led by health-care and technology shares, amid a rout in U.S. equities fueled by selling of some of the bull market’s pest-performing shares.
General Motors Co. shares trading in Canada fell 4.5 percent as Ontario said it planned to sell its shares in the company next year. Raise Production Inc. rose 89 percent after the oil well services company said it was in talks to complete the first commercial sale of one of its pump systems.
The Standard & Poor’s/TSX Index slipped 50.31 points, or 0.4 percent, to 14,257.69 at the end of trading in Toronto. The gauge fell 0.9 percent yesterday, the biggest drop since Feb. 3. In the U.S., the Nasdaq Composite Index fell 1.3 percent while the S&P 500 dropped 1 percent to cap a 2.6 percent weekly loss, the worst since 2012.
Yesterday, the S&P 500 fell 2.1 percent and the Nasdaq dropped 3.1 percent as investors sold high-flying technology stocks that had soared in 2013.
In Canada, oil and gas companies kept the benchmark equity index from falling as much as its U.S. counterparts. Energy companies rose 0.1 percent as a group.
“While the market is down, there are a couple of sectors that are doing better, certainly oil and gas,” said Irwin Michael, a fund manager with ABC Funds in Toronto, which manages about C$850 million ($774 million). “Listening to the radio, they said gasoline is going up 2 cents a liter tonight. That’ll bring it up to around C$1.37 and the feeling is that we’re going to see it hit new record highs for this cycle.”
Prism Medical Ltd., which sells mobility aids for homes, rose 32 percent to C$7.90 after it said it was selling its business in the U.K. for 30 million pounds ($50 million).
Thompson Creek Metals Company Inc. rose 9.9 percent to C$3.12 after the miner said it sold more copper and molybdenum in the first quarter of 2014 than in the last quarter of 2013.