Canada Stocks Extend Monthly Loss as GDP Shrinks Most Since 2009

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Canadian stocks fell, extending a monthly loss, as data showed the biggest contraction in the nation’s economy since 2009.

Health-care stocks fell amid a 1.3 percent slide for Valeant Pharmaceuticals International Inc. Canadian Pacific Railway Ltd. and Canadian National Railway Co. decreased for a second day, losing more than 1.4 percent. Bank of Nova Scotia rose 1 percent after posting second-quarter profit that beat analysts’ estimates.

The Standard & Poor’s/TSX Composite Index fell 116.63 points, or 0.8 percent, to 14,990.37 at 10:58 a.m. in Toronto. The benchmark Canadian equity gauge has dropped 1.5 percent in May, trimming its gain for the year to 2.5 percent.

Canada’s gross domestic product fell at a 0.6 percent annualized pace in the first quarter, as collapsing energy prices prompted a plunge in business investment. The drop exceeded all 22 economist forecasts in a Bloomberg News survey. Statistics Canada also revised its fourth-quarter growth estimate to 2.2 percent, from 2.4 percent previously.

Data also showed the U.S. economy shrank in the quarter, held back by harsh winter weather, a strong dollar and delays at ports. GDP contracted at a 0.7 percent annualized rate, revised from a previously reported 0.2 percent gain.

All 10 industries in the S&P/TSX slipped on trading volume 16 percent lower than the 30-day average. Industrial and consumer-staples companies dropped the most, tumbling more than 1 percent. Financial companies, which account for about one-third of the index by weighting, fell 0.8 percent.

Bank Earnings

Bank of Nova Scotia added 1 percent. Earnings for Canada’s third-largest lender by assets beat forecasts as gains in capital markets helped counter a dip in international banking.

Scotiabank is the last of Canada’s biggest lenders to report quarterly results, with all six beating estimates on net income. Bank of Canada, Canadian Imperial Bank of Commerce and National Bank of Canada posted higher profit fueled by gains in capital markets, while Toronto-Dominion Bank and Bank of Montreal saw profits dip from a year earlier as restructuring costs crimped results.

While Valeant declined 1.3 percent, the company again surpassed Toronto-Dominion’s position as Canada’s second-largest stock as the two jockey for position behind leader Royal Bank of Canada. Valeant, the top performer in Canada’s benchmark equity gauge this year, briefly topped Toronto-Dominion’s market capitalization yesterday before slipping back to the No. 3 spot at the market’s close.

Toronto-Dominion slumped 1.9 percent today.

Mining companies advanced, with New Gold Inc. and Kinross Gold Corp. increasing more than 2.3 percent. The S&P/TSX Gold Index added 0.5 percent, extending its three-day gain to 2.4 percent.