Canadian Stocks Slide as Concordia Plunges, Miners Retreatby
Drugmaker plunges to 2 year-low after suspending dividend
Oil producers lone bright spot as crude caps weekly advance
Canadian stocks pared a weekly gain as Concordia International Corp. tumbled to the lowest in more than two years on disappointing results and miners led a gauge of resource producers lower.
The S&P/TSX Composite Index lost 0.3 percent to 14,747.45 at 4 p.m. in Toronto, with nine of 10 main industries falling. Trading volume was in line with the 30-day average. The benchmark gauge advanced 0.7 percent in the past five days and remains the second-best performing developed market in the world, behind New Zealand.
Concordia International plummeted 39 percent for its biggest slide since July 2013. The drugmaker unexpectedly cut its 2016 forecast, suspended its dividend, and announced that Chief Financial Officer Adrian de Saldanha was leaving. The sector has provided the biggest drag on the index, dropping 70 percent so far in 2016.
Financial services companies dropped for a third session, led by losses in Brookfield Asset Management Inc. after its net income fell 51 percent in the second quarter. Royal Bank of Canada and Toronto-Dominion Bank fell at least 0.2 percent.
Raw-materials producers drifted to a loss as nickel suffered its worst two-day slump since May to lead industrial metals lower. Diversified mining company Teck Resources Ltd. lost 4 percent. Gold futures posted the first back-to-back weekly losses in more than two months.
Energy producers were the lone industry to advance, up 0.3 percent as crude posted its biggest weekly advance since April. The raw-material sector remains the biggest gainer in the benchmark for Canadian equities in 2016, up 63 percent, while energy stocks are second, up 22 percent.