Canada Stocks Fall to a 3-Week Low as Commodities Extend SlideEric Lam
The deepening rout in commodities from copper to silver sent Canadian stocks to a three-week low.
The miners and energy producers that make up about one-third of Canada’s benchmark stock index led losses as metals prices plunged to levels last seen in 2009 amid signs China’s economy is weakening further. China is the world’s biggest consumer of commodities and Canada’s second-largest trading partner.
The Standard & Poor’s/TSX Composite Index fell 57.66 points, or 0.4 percent, to 14,193.87 at 4 p.m. in Toronto, the lowest level since July 28. The benchmark Canadian equity gauge has fallen 3 percent this year.
The Bloomberg Commodity Index, a basket of 22 raw materials including crude and gold, tumbled 0.6 percent for a sixth straight decline. The gauge is trading at a 2002 low and has slumped 14 percent this year.
Materials producers sank 1.7 percent, as Teck Resources Ltd., the biggest diversified miner in Canada, dropped 8 percent and First Quantum Minerals Ltd. sank 9.7 percent.
Commodities producers are the worst-performing industries in the S&P/TSX this year as crude has slumped more than 30 percent from this year’s June peak into a bear market and metals from copper to gold have declined amid concern global growth is slowing.
Commodities selling resumed today after shares in Shanghai sank 6.2 percent, the most in three weeks, as investors lowered expectations for further monetary stimulus. China is growing more slowly than official data suggests and below potential, a Bloomberg survey indicates.
Bombardier Inc. slumped 6.2 percent for a fourth day of losses, extending a 1993 low. The stock has plunged 71 percent this year and is the second-worst performing stock in the S&P/TSX ahead of Trican Well Service Ltd.
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