Suncor Energy Inc., Canada’s biggest oil and gas company, dropped 3.3 percent as oil futures slid the most in two months. Goldcorp Inc., the country’s second-largest gold producer, lost 2.1 percent as the metal retreated more than $22 an ounce. Teck Resources Ltd. slumped 4.5 percent after raised minimum mortgage rates and down payment ratios for some home purchases.
The Standard & Poor’s/TSX Composite Index decreased 140.86 points, or 1.2 percent, to 12,070.66, for a 0.9 percent decline this week. The index retreated to its lows of the day after the Securities and Exchange Commission sued Goldman Sachs Group Inc. for fraud tied to collateralized debt obligations.
The Canadian benchmark had climbed 8.8 percent from Feb. 5 to yesterday as the Reuters/Jefferies CRB Commodity Price Index rallied 8.2 percent on speculation growth in emerging markets would spark greater demand for energy and raw materials. Companies in those industries make up 45 percent of Canadian stocks by market value.
“The markets are a little bit nervous about the fact that at one point, China will have to raise rates and slow down lending,” said Stephen Gauthier, a money manager at Demers Valeurs Mobilieres in Montreal, which oversees C$150 million ($148 million).
China’s cabinet said “more forceful” steps are needed to cool speculation after property prices rose at a record pace in March.
Dollar Rises
The U.S. dollar rose for a second day against the euro after European Union finance ministers said Greece lacks an immediate plan to trigger a rescue package.
Crude oil slumped 2.7 percent in New York to an April low of $83.23 a barrel. Suncor declined 3.3 percent to C$33.65. Canadian Natural Resources Ltd., the country’s second-largest energy company by market value, decreased 2.2 percent to C$77.06. Cenovus Energy Inc., the oil company spun off from EnCana Corp. in December, slipped for the first time in seven days, losing 3.3 percent to C$29.16.
Gold futures retreated 2 percent, the most since Feb. 4. Goldcorp fell 2.1 percent to C$39.44. Barrick Gold Corp., the world’s largest producer, dropped 1.2 percent to C$39.65. Jaguar Mining Inc., which mines gold in Brazil, tumbled 5.8 percent to C$10.63 after saying its costs increased in the first quarter due to currency fluctuations.
Drilling Results
Andean Resources Ltd., which explores for gold in Argentina, surged 6.3 percent to a record C$3.06 after announcing drilling results.
Teck, Canada’s largest base-metals producer, lost 4.5 percent to C$42.67 as copper and zinc retreated. Teck also sells coal for use in Chinese steel mills.
An index of Canadian banks erased earlier gains and fell 0.4 percent after the SEC announced its case against Goldman Sachs. Toronto-Dominion Bank, which has 1,051 U.S. branches, dropped 1.1 percent to C$76.13. Bank of Nova Scotia, Canada’s third-largest bank, declined 0.6 percent from a 22-month high to C$51.81.
Air Canada jumped 6.8 percent to C$2.50 after Raymond James Financial Inc. analyst Ben Cherniavsky raised his rating on the country’s biggest airline to “strong buy” from “outperform.” Passenger traffic and cargo demand are increasing, Cherniavsky wrote.
MDS Inc., the provider of medical products and services, led the S&P/TSX with a 4.6 percent climb to C$9.05. RBC analyst Douglas Miehm set a 12-month price forecast of $9.50 on the company’s U.S.-listed shares.
