Canada Stocks Retreat as Valeant Pharmaceuticals, Lenders TumbleEric Lam
Canadian stocks fell, snapping the longest rally in four months, as the nation’s largest lenders declined for the second time in three days and Valeant Pharmaceuticals International Inc. retreated with U.S. health-care companies.
Equities fell as Valeant, the largest company in the Standard & Poor’s/TSX Composite Index by market value, slumped 6 percent after four days of gains. The drug maker fell the most in a year, and joined a 2.1 percent slide among health-care stocks in the S&P 500. The Nasdaq Biotechnology Index slumped 4 percent.
The S&P/TSX fell 97.08 points, or 0.7 percent, to 14,405.91 at 4 p.m. in Toronto. The gauge has fallen 1.6 percent in 2015, one of only three developed markets in negative territory for the year among the the 24 tracked by Bloomberg.
Energy and materials producers rebounded, erasing earlier losses despite further declines in oil prices. U.S.-listed energy companies gained as offshore driller Transocean Ltd. rallied after posting better-than-estimated profits. Energy and materials are the worst-performing industries in Canada this year and account for almost 30 percent of the benchmark Canadian equity gauge.
The Bloomberg Commodity Index, which tracks a basket of prices for raw materials including gold, natural gas and crude, slipped 0.3 percent, after paring an earlier 0.6 percent decline.
The resource-dominated S&P/TSX had added 3.6 percent during a six-day rally that was the longest since April. The advance follows a seven-day rout of 5 percent that was the longest since
Bank of Nova Scotia sank 1.9 percent and Toronto-Dominion Bank retreated 0.8 percent as financial services stocks declined
0.7 percent as a group.
Barrick Gold Corp. rallied 3.8 percent to lead an advance among gold producers after intensifying efforts to strengthen its balance sheet.
Trilogy Energy Corp. lost 1.3 percent, trimming an earlier drop of 16 percent after reporting a second-quarter loss Wednesday. SNC-Lavalin Group Inc. tumbled 8.4 percent, the most since February 2012, after posting a second-quarter profit that missed analysts’ estimates, dragged down by losses in the engineering and construction unit.
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