Canada Stocks Fall Most in a Year as Commodities Slide

Canadian stocks fell a second day amid a global market selloff, tumbling the most in more than a year, as declining oil and metal producers outweighed better-than-expected jobs data.

Calfrac Well Services Ltd. slumped 8.4 percent and Trican Well Service Ltd. declined 6 percent, as a gauge of energy stocks tumbled a ninth day for its worst losing streak in three years. Air Canada fell 5 percent for a fourth day of declines.

The Standard & Poor’s/TSX Composite Index fell 233.24 points, or 1.6 percent, to 14,227.36 at 4 p.m. in Toronto, the biggest decline since June 2013 and a six-month low. The equity gauge fell this week for the sixth straight time, the longest stretch since April 2012. The S&P/TSX has tumbled 9.1 percent from its Sept. 3 record.

“A lot of financial players in oil are exiting the market,” said Monika Skiba, a senior managing director and fund manager at Manulife Asset Management Ltd. in Toronto. Her firm manages about $281 billion. “The reason they’re doing it is the expectations of global growth going weaker. Energy is still weak, gold stocks are continuing to be weak, and industrials.”

The MSCI All-Country World Index, which tracks both developed and developing markets, fell 1.6 percent to the lowest since February as the Dow Jones Industrial Average erased its gains for the year. The Bloomberg Commodity Index dropped 0.5 percent.

‘Geopolitical Concerns’

“A large part of the rise in commodities and energy prices in 2014 was unwarranted,” said Kash Pashootan, portfolio manager at First Avenue Advisory of Raymond James Ltd. in Ottawa. His firm manages C$220 million. “It’s been purely driven by geopolitical concerns and uncertainty with supply disruptions. The TSX will trade in the short and medium term based on how elevated those risks are.”

The unemployment rate in Canada unexpectedly dropped to 6.8 percent last month, the lowest since December 2008, as the economy added 74,100 new jobs, including 69,300 full-time positions. Economists had forecast an increase of 20,000, and an unchanged employment rate.

All 10 industries in Canada’s benchmark gauge declined, on trading volume 32 percent higher than the 30-day average.

Calfrac Well Services plunged 8.4 percent to C$13.90, the most since 2011. Trican lost 6 percent to C$10.98, close to a two-year low. Energy stocks retreated 1.5 percent as a group to an eight-month low.

Nine-Day Fall

The S&P/TSX Energy Index has fallen for nine days, the longest stretch since August 2011, and is down 17 percent from its June peak this year.

Crude in New York posted the biggest weekly drop since January after falling into a bear market yesterday as it slid 20 percent from its June high. Brent crude traded near a four-year low.

Canadian Pacific Railway Ltd. dropped 4.7 percent to C$212.20 and Canadian National Railway Co. retreated 3 percent to C$72.25 as industrial stocks slumped 2.8 percent, the most in three years.

Novagold Resources Inc. slumped 11 percent to C$3.11 as gold futures fell from a two-week high. Raw-materials stocks sank 1.8 percent as a group to a December low.

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