Canadian Stocks Slump to 1-Month Low as Commodity Stocks DropEric Lam
Canadian stocks fell, sending the Standard & Poor’s/TSX Composite Index to a one-month low, as energy and commodity shares slumped and the Federal Reserve maintained a commitment to keep interest rates near zero for a “considerable time.”
Raging River Exploration Inc. lost 3.7 percent as West Texas Intermediate crude dropped from a two-week high. Torex Gold Resources Inc. and Semafo Inc. tumbled at least 5.5 percent as gold declined. Canadian Pacific Railway Ltd. and Canadian National Railway Co. climbed more than 0.7 percent to pace gains among industrial stocks.
The Standard & Poor’s/TSX Composite Index fell 51.66 points, or 0.3 percent, to 15,458.88 at 4 p.m. in Toronto. The gauge has fallen 1.3 percent since closing at a record on Sept. 3. It has advanced 13 percent this year, the second-best performer among the world’s developed markets behind Denmark.
The Fed tapered monthly bond buying to $15 billion in their seventh consecutive $10 billion cut, staying on course to end the program in October. Officials also raised their median estimate for the federal funds rate at the end of 2015 to 1.375 percent, from 1.125 percent in June.
Seven of the 10 main industries in the S&P/TSX retreated.
Raging River declined 3.7 percent to C$10.30 as energy stocks dropped 0.9 percent as a group. West Texas Intermediate crude slid for the first time in three days, down 46 cents to close at $94.42 a barrel in New York. U.S. supplies increased by 3.67 million barrels in the week ended Sept. 12, the EIA, the Energy Department’s statistical arm, said. Analysts surveyed by Bloomberg had expected a drop of 1.5 million.
Canadian Pacific Railway increased 1.7 percent to C$229.81. Canadian National Railway added 0.8 percent. CN Rail executives, speaking at a Canadian Imperial Bank of Commerce conference, said the company sees at least five to seven years of growth in crude shipments.