Canada Stocks Slide as Materials Produce Retreat With Lendersby
Crude a drag as OPEC’s Libya, Nigeria set to ramp up supplies
Concordia plummets to 2013 low to drag health-care lower
Canadian stocks fell, capping a second straight weekly loss, as raw-materials producers tumbled with metals prices while energy producers retreated as crude slumped to the lowest in five weeks.
The S&P/TSX Composite Index lost 0.4 percent to 14,450.84 at 4 p.m. in Toronto, halting a two-day rally and sending it to the fourth weekly drop in the last five. The index has advanced 2.8 percent this quarter. That’s made Canadian stocks more expensive than U.S. peers, with a price-to-earnings ratio of 22.9 maintaining a 14 percent premium over the S&P 500 Index.
Financials and raw-materials producers fell at least 0.5 percent, the biggest contributors to losses as seven of 10 industries in the S&P/TSX retreated. Barrick Gold Corp. and Alamos Gold Inc. lost more than 1.6 percent as gold posted a weekly decline.
The S&P/TSX Materials Index remains the top performer in Canada this year, fueling a rebound in the wider gauge after slumping the most since the 2008 financial crisis last year. The group is still up 47 percent and set to halt the longest yearly losing streak since 1988.
Oil fell 2 percent in New York to a one-month low, extending a weekly decline to 6.2 percent. OPEC members Libya and Nigeria are preparing to boost exports within weeks, after supplies had been reduced in those countries due to domestic conflicts.
Concordia International Corp. plunged 19 percent to the lowest level since 2013. In a statement commenting on a new bill introduced in the U.K. on Thursday to manage the cost of medicines, the company reaffirmed its 2016 forecast and noted it believes it has access to sufficient financial resources to manage its liabilities.
Concordia will also be removed from the S&P/TSX benchmark, according to a statement from S&P Dow Jones Indices. The struggling drugmaker in August unexpectedly cut its 2016 forecast, suspended its dividend and announced its chief financial officer was leaving.
Global markets resumed their decline, with a gauge of world developed and developing markets capping a second week of losses, amid fresh concern central banks are rethinking their stimulus policies even as global growth remains tepid.
The S&P 500 and Dow Jones Industrial Average lost at least 0.4 percent in New York, weighed by European stocks retreating after lender Deutsche Bank AG said the U.S. Justice Department is seeking $14 billion to settle a probe into mortgage-backed securities.
Canadian lenders reversed their strongest rally in more than two months Thursday. Royal Bank of Canada and Bank of Montreal slipped at least 0.5 percent.