Canada Stocks Fall to 2-Week Low as Energy Shares Drop With OilOliver Renick
Canadian stocks dropped to a two-week low as energy shares declined after oil prices fell below $100 for the first time since May.
Pacific Rubiales Energy Corp. and Lightstream Resources Ltd. sank more than 5.4 percent. Argonaut Gold Inc. lost 8.8 percent after saying gold production in the second quarter fell. Pretium Resources Inc. and Detour Gold Corp. retreated at least 4.2 percent as gold prices retreated to a three-week low.
The Standard & Poor’s/TSX Composite Index lost 89.91 points, or 0.6 percent, to 15,081.32 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has gained 11 percent this year, the third-best performance among the world’s developed markets. The index closed at a record on July 9.
The S&P/TSX Energy Index dropped 1.2 percent as eight of 10 industries in the S&P/TSX fell. West Texas Intermediate crude fell 0.9 percent to $99.96 in New York, the lowest settlement since May 6. Brent tumbled to a three-month low as supply-disruption concerns eased with Libyan output gains and as Iraqi shipments were unaffected by an insurgency.
Lightstream Resources lost 6.2 percent to C$7.11. The company said production for the second quarter averaged 42,500 barrels of oil equivalent per day, a 3 percent reduction from first-quarter levels.
Pacific Rubiales Energy retreated 5.4 percent to C$19.25.
Argonaut Gold slid 8.8 percent to C$4.16, the biggest decline since January. The Reno, Nevada-based gold mining company said production in the second quarter was 30,310 gold equivalent ounces, compared with 34,572 ounces the year before.
Pretium Resources slumped 5.3 percent to C$8.70 and Detour Gold lost 4.2 percent to C$13.62 as gold futures fell 0.7 percent to settle at $1,297.10 an ounce in New York. Yesterday, the price dropped 2.3 percent.