Canada Stocks Fall After Quarterly Selloff as Commodities Slump

  • Valeant Pharmaceuticals climbs back from early decline
  • Oil producers erase early advance as crude rally disappears

Canadian stocks fell, after closing the worst quarter since 2011, as raw-materials shares retreated and oil producers erased an early advance.

Equities slipped 0.5 as oil reversed a 4.5 percent gain. Valeant Pharmaceuticals International Inc. recovered from early losses, adding to Wednesday’s 12 percent rebound. The stock plunged 22 percent in September amid increased scrutiny over U.S. drug pricing.

The Standard & Poor’s/TSX Composite Index fell 65.07 points to 13,241.89 at 4 p.m. in Toronto, after reaching an October 2013 low on Monday. The gauge tumbled 8.6 percent in the quarter that ended Wednesday and has slumped 14 percent from an April peak.

Global equities posted the worst quarterly losses in four years in the third quarter amid rising concern that a slowdown in Chinese growth will spread to economies around the world at the same time that the U.S. central bank is considering raising interest rates. Commodities have been hardest hit as China is the world’s leading consumer. China is Canada’s second-largest trading partner after the U.S.

The Bloomberg Commodity Index, which tracks a basket of prices from live cattle to gold, was little changed after two days of gains. The gauge has plunged 16 percent this year. Oil advanced as much as 4.5 percent amid better-than-forecast manufacturing data from China, before paring. The nation’s official manufacturing gauge for September stabilized at 49.8, ahead of the median estimate of 49.7 in a Bloomberg survey. Readings of less than 50 indicate contraction.

Amaya Inc., the online gambling company, jumped 17 percent for the biggest gain since June 2014 after receiving approval to operate its PokerStars and Full Tilt poker brands in New Jersey.

Canadian equities are among the worst-performing markets in the developed world this year with a 9.5 percent slide, led by declines among raw-materials and energy producers of at least 24 percent.

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