Canadian Stocks Little Changed After Record as Commodities SlumpEric Lam
Canadian stocks were little changed, after closing at a record on Aug. 29, as a slump in gold and crude producers offset a rally among banks.
Detour Gold Corp. and Goldcorp Inc., the largest gold producer by market value, retreated at least 4.1 percent as gold fell to a two-month low with a stronger dollar. Suncor Energy Inc. and Canadian Natural Resources Ltd. declined more than 1.5 percent. Bank of Montreal and National Bank of Canada climbed to all-time highs as financial stocks advanced a second day.
The Standard & Poor’s/TSX Composite Index fell 6.65 points, or less than 0.1 percent, to 15,619.08 at 4 p.m. in Toronto, paring a steeper decline in afternoon trading. The market was closed yesterday for the Labor Day holiday.
Detour Gold dropped 5 percent to C$13 and Goldcorp tumbled 4.1 percent to C$29.27, the biggest drop in five months. Raw-materials shares slumped 1.6 percent as a group to the lowest in seven weeks. The Canadian equities benchmark has surged 15 percent this year, making it the second-best performer among developed equity markets behind Denmark. Trading volume in the S&P/TSX was 9.8 percent above the 30-day average today.
Gold for December delivery decreased 1.7 percent to settle at $1,265 an ounce in New York, the lowest since June. The dollar reached a seven-month high against 10 major currencies.
Athabasca Oil Corp. sank 4 percent to C$7.60, snapping a six-day gain after closing an agreement with PetroChina Co. Aug. 29 to sell the rest of its Dover oil-sands project for C$1.18 billion ($1.08 billion). The deal ended weeks of speculation about whether the Chinese company would pay.
Suncor lost 1.5 percent to C$43.67 and Canadian Natural Resources fell 2.6 percent to C$46.17 as crude for October delivery declined 3.2 percent to $92.88 a barrel in New York.
The Purchasing Managers’ Index in Europe fell to 50.7 in August from 51.8 in July, London-based Markit Economics said yesterday. China’s manufacturing slowed more than estimated last month, while in the U.S., the Institute for Supply Management’s index showed expansion at the fastest pace in three years.
Canadian National Railway Co. advanced 1.3 percent to C$79.10, as the railway operator’s market capitalization of C$64.7 billion eclipsed Suncor’s C$64 billion for the fourth-largest in Canada.
Bombardier Inc. decreased 0.6 percent to C$3.64, the lowest level in a month, after Goldman Sachs Group Inc. analyst Noah Poponak said the aircraft manufacturer may see “inevitable” delays for its CSeries jet.
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