Canada Stocks Slide as Gold Declines Overshadow Valeant RallyOliver Renick
Canadian stocks fell the most in more than a month, paring its April gain, as data showed the economy stalled in February and falling gold prices overshadowed a rally in Valeant Pharmaceuticals International Inc.
Raw-materials companies lost 1.4 percent. Pretium Resources Inc. and Goldcorp Inc. slid more than 5.1 percent as gold prices tumbled. Valeant jumped 2.1 percent, extending a rally to 7 percent over three days.
The Standard & Poor’s/TSX Composite Index fell 122.82 points, or 0.8 percent, to 15,224.52 at 4 p.m. in Toronto, ending the month with an advance of 2.2 percent. The benchmark Canadian gauge added 1.9 percent in the first quarter despite a decline of 2.2 percent in March.
Canada’s gross domestic product was unchanged in February, compared with economists’ forecast for a contraction, as a plunge in oil rigging and drilling was offset by gains in consumer spending.
Output remained at an annualized C$1.65 trillion ($1.37 trillion), Statistics Canada said Thursday in Ottawa, while the median forecast in a Bloomberg economist survey was for a 0.1 percent contraction.
Pretium lost 5.1 percent as gold erased its gains for the year. Goldcorp lost 6.2 percent after reporting first-quarter earnings that missed analysts’ estimates.
ARC Resources Ltd. declined 2.3 percent, pacing a fourth loss in five days for energy shares. The group gained 7 percent in April,its biggest advance since 2011, as oil rallied 25 percent.
Nine of 10 industries in the benchmark gauge retreated today, led by consumer-staples companies. Volume was 24 percent above the 30-day average for this time of day.
Maple Leaf Foods Inc. added 2.3 percent as the food manufacturer reported first-quarter revenue that topped estimates.