Canadian Stocks Slip to Two-Year Low Amid Commodities Selloffby
Raw-materials shares fall on negative Macquarie outlook
Energy producers slump even as crude oil prices rebound
Canadian stocks fell to their lowest level in more than two years as commodity prices continued to decline ahead of the U.S. Federal Reserve’s rate hike decision on Wednesday.
The Standard & Poor’s/TSX Composite Index declined 0.7 percent to 12,695.49 at the close in Toronto, its lowest since Oct. 8, 2013. The gauge tumbled 4.3 percent last week, its third consecutive week of declines.
As the Fed’s decision on Wednesday looms closer, a Bloomberg basket of prices for natural resources from copper to oil and gold extended its decline this year to 25 percent. Canada’s equity benchmark -- 30 percent of which is commodity producers -- has had the third worst returns year to date of all developed nations, only faring better than Greece and Singapore.
Raw-materials producers lost 5 percent after Macquarie Group Ltd. said there are still doubts over improving demand for metals. First Quantum Minerals Ltd., Centerra Gold Inc. and Teck Resources Ltd. sank at least 6 percent. Gold decreased 1 percent, while copper lost 0.5 percent. The S&P/TSX gauge of commodity producers has fallen 25 percent in 2015.
Energy producers in the S&P/TSX slid 0.7 percent even as oil rebounded after prices fell below $35 a barrel in New York for the first time since 2009. Encana Corp. and Enerplus Corp. lost more than 7.2 percent. Baytex Energy Corp. fell 5 percent to a record low, while Bankers Petroleum Ltd. decreased 4.1 percent to its lowest level since February 2009.
Valeant Pharmaceuticals International Inc. climbed, as an index of S&P/TSX health-care companies rose 0.7 percent higher. Rogers Communications Inc. gained 1.1 percent, as Canadian phone companies advanced 1.3 percent.