Canada Stocks Fall Most in Eight Weeks as Resource Prices Slump

  • Gold hammered as investors shun haven for global stocks
  • Retailer Hudson’s Bay plunges after slashing year forecasts

Friday's Canadian Market Movers

Canadian stocks fell for a second day, posting their worst one-day slide in eight weeks, as resource producers tumbled with oil and gold.

The S&P/TSX Composite Index fell 1.3 percent to 14,555.41 at 4 p.m. in Toronto, paring gains for the week to 0.3 percent. The equity benchmark remains up 12 percent in 2016, the top performer among developed markets tracked by Bloomberg. Canadian stocks are about 10 percent more expensive than their peers in the S&P 500 Index.

Raw-materials and energy producers led declines across 10 of 11 industries in the S&P/TSX. Gold prices plunged the most in a month as investors warmed to the prospects of a Trump presidency improving U.S. economic growth through infrastructure spending. Gold futures have fallen 6.1 percent this week, for the biggest weekly drop in more than three years. Crude retreated to the lowest in eight weeks.

Barrick Gold Corp. dropped 5.8 percent and Agnico Eagle Mines Ltd. fell 8.8 percent to lead gold producers lower, as the S&P/TSX Materials Index sank 4.3 percent, the most in a month. Silver Wheaton Corp. tumbled 10.1 percent. Industrial metals producer First Quantum Minerals Ltd. retreated 5 percent.

Iron ore, a pacesetter for the commodity rally this year, may be headed for a fall as prices that have almost doubled since bottoming face rising supply and headwinds on demand, according to Capital Economics Ltd. Copper meanwhile surged as much as 7.6 percent to briefly surpass $6,000 a ton, before prices suddenly collapsed within minutes in the afternoon, leaving investors voicing shock over the swings in prices.

Canadian Natural Resources Ltd. and Suncor Energy Inc. lost more than 1 percent to lead energy producers lower. Crude futures fell 2.8 percent Friday after Iran and Iraq told the Organization of Petroleum Exporting Countries they both raised production last month while Saudi Arabia pumped near record levels.

Hudson’s Bay Co. sank 10.6 percent, its worst slide in 11 months, after slashing its 2016 forecasts for sales and earnings as same-store sales weakened. Previous guidance had been based on the expectation comparable sales would improve in the latter half of the year.

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