Canada Stocks Fall as Oil Producers Drop With Banks After JobsEric Lam
Canadian stocks fell for a second day despite better-than-forecast job gains, as energy producers tumbled with crude for a sixth weekly drop and financial shares retreated.
Energy companies sank 1.8 percent as a group, while crude futures fell 1.8 percent in New York, pushing the weekly loss to 6.9 percent on speculation the global supply glut will be prolonged. Royal Bank of Canada and Toronto-Dominion Bank declined at least 0.7 percent after also slipping Thursday.
The Standard & Poor’s/TSX Composite Index fell 103.21 points, or 0.7 percent, to 14,302.70 at 4 p.m. in Toronto. The gauge has lost 1.2 percent this week and fallen 2.3 percent in 2015, one of only three developed markets in negative territory for the year among the 24 tracked by Bloomberg.
The Bloomberg Commodity Index, which tracks a basket of prices for raw materials including gold, natural gas and crude, was little changed near 13-year lows after a two-day slide. 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 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 2011.
Valeant Pharmaceuticals International Inc. slipped 0.1 percent, falling for a second day. The drug maker tracked back-to-back declines among U.S.-listed biotechnology and health-care shares.
Canada gained 6,600 jobs during the month, leaving the nation’s unemployment rate unchanged at 6.8 percent, helped by increases in part-time and self-employed work. U.S. payrolls added 215,000 jobs in July, keeping the Federal Reserve on the path toward raising interest rates as soon as next month.
Pengrowth Energy Corp. tumbled 15 percent to an all-time low, and Crescent Point Energy Corp. retreated 4.3 percent to lead energy shares lower. Great-West Lifeco Inc. and Manulife Financial Corp. lost at least 1.2 percent to help pace declines among financial-services companies.
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