Canada Stocks Slide a 5th Day as Base Metals Slump on China Databy
Gambling company Amaya plunges record 32% as forecasts slashed
Teck Resources retreats as zinc leads industrial metals lower
Canadian stocks slumped a fifth day, extending losses after reaching a month low, amid a resurgence in concern over slowing economic growth in China.
China’s consumer-price index rose a slower-than-forecast 1.3 percent in October, the latest sign that consumer demand is weakening and the world’s second-biggest economy is slowing. The fresh data comes after an earlier report showed a slump in imports in China on weaker industrial demand for coal, iron and other commodities.
The Standard & Poor’s/TSX Composite Index fell 70.99 points, or 0.5 percent, to 13,411.63 at 4 p.m. in Toronto. The index has lost 8.3 percent this year, trailing only Singapore and Greece among developed markets.
Base metals and coal producer Teck Resources Ltd. dropped 3 percent and First Quantum Minerals Ltd. sank 6.6 percent as zinc traded at a six-year low, leading declines in industrial metals. Raw-materials producers lost 2.1 percent as a group, for the fourth decline in five sessions.
Canadian equities have lagged most peers, led by declines in natural resource and health-care stocks, as the country’s resource-dominated market has been hampered by a slump in oil prices, slowing overseas growth and the prospect of an interest-rate hike from the Federal Reserve. China is Canada’s second-largest trading partner after the U.S.
Amaya Inc., the online gambling purveyor, plunged a record 32 percent after cutting its revenue and earnings expectations for the year. The strengthening U.S. dollar, especially against the euro, has significantly crimped consumer purchasing power and curbed revenue, the company said.
Intertape Polymer Group Inc. jumped 9.2 percent, the most since May. U.S. hedge funds FrontFour Capital Group and Zelman Capital are agitating for change at the company, urging the board to consider ways to unlock value including a possible sale of the Quebec-based packaging company.
Valeant Pharmaceuticals International Inc. slipped 2.2 percent. The drugmaker said in a conference call Tuesday that the decision to cut ties with pharmacy Philidor Rx Services would meaningfully affect its dermatology business. Valeant will also host an investor day and update financial forecasts before the end of the year. Valeant has lost 68 percent from an Aug. 5 high amid pressure over how it prices its drugs.