Canadian Stocks Resume Declines Amid Flight From Risk Assetsby
Financial, energy shares offset advance in material companies
Media deal help prop up consumer discretionary stocks
Canadian stocks resumed declines, after posting yesterday the first daily advance of 2016, as selloffs in global equities and commodities intensified.
The Standard & Poor’s/TSX Composite Index sank 1.6 percent to 12,170.41 at 4 p.m. in Toronto. The benchmark gauge gained yesterday, halting a nine-day losing streak.
Financial and energy stocks in the S&P/TSX contributed most to declines. Royal Bank of Canada and Toronto-Dominion Bank dropped at least 1.7 percent. Paramount Resources Ltd. sank 9.6 percent. Brent slid closer to $30 a barrel following a U.S. government report that showed crude and fuel stockpiles climbed.
Global equities have struggled in 2016 as turmoil in China’s equity and currency markets at the start of the year fueled concern about global growth. Canada’s resource-rich benchmark was the second of seven countries to see its benchmark enter a bear market, capping a 20 percent slide on Jan. 7.
Material stocks advanced as investors flocked to gold as a haven. Barrick Gold Corp. climbed 2.2 percent.
The consumer discretionary sector also gained. Shaw Communications Inc. led the sector, advancing 5.3 percent. Corus Entertainment Inc. agreed to buy the company’s media business for C$2.65 billion in cash and stock, helping Shaw finance its wireless expansion.
Among other stocks moving on company news, Magna International Inc. gained 2.3 percent. The auto parts-maker reported a 2016 sales forecast in-line with analyst estimates.