Canadian shares declined as a slump in commodities prices nudged down raw-material producers. The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.6 percent to 14,512.29 at 12:41 p.m. Three shares declined for every issue that advanced as eight out of 10 share groups were in the negative territory.
The materials sub-index, which includes mining shares, tumbled 3.3 percent as gold fell to a near four-month low. Goldcorp (TSE:G), Canada’s largest gold miner by market value, rose 0.3 percent to C$21.18. Barrick Gold (TSE:ABX), the second-largest, slumped 3.9 percent to C$13.20.
Silver Wheaton (TSE:SLW) tumbled 9.8 percent to C$20.04. The world’s largest precious-metals finance firm said Canada Revenue Agency is proposing to reassess the company’s tax practices related to income earned by its foreign subsidiaries outside of Canada.
Spot gold dropped to its lowest since March 18 at $1,154.45 an ounce earlier and was down 1 percent at $1,158.15 an ounce, while U.S. gold futures dropped 1.5 percent to $1,155.90 an ounce.
Financials, the index's most heavily weighted sector, lost 1 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, dropped 1.1 percent to C$75.51. The largest Canadian lender by market value announced a key executive change today, naming Doug Guzman as the new head of its wealth management and insurance division.
Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, dropped 0.5 percent to C$52.46.
The energy sector, the main index's second most heavily weighted group, rose 0.3 percent as oil, Canada’s largest export, were steady after selloff.
Suncor Energy (TSE:SU), Canada's largest oil sands producer, added 1.6 percent to C$34.73. Canadian Natural Resources Limited (TSE:CNQ), the nation’s second-largest energy producer, inched up 0.6 percent to C$33.51.
Light, sweet crude for August delivery fell 0.7 percent to $52.14 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 0.1 percent to $56.59 a barrel on ICE. Oil prices pared losses but held near multi-month lows on concerns about a growing glut of crude oil and turmoil in the Chinese stock market.
Premium Brands Holdings (TSE:PBH) fluctuated as the specialty foods company said it has purchased Isernio’s Inc., a U.S.-based fresh sausage maker, for $12 million.
Jean Coutu Group (TSE:PJC.A), the Canadian drugstore chain, declined 4 percent to C$21.39 after posting a fiscal first-quarter profit of C$0.27 per share, down from C$0.29 and below the C$0.30 analysts polled by Capital IQ expected.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) fell 1.9 percent to 650.68 at 12:24 p.m. in Toronto.
In economic news, Canada's trade deficit widened to its second-largest on record in May as non-energy exports fell, fueling expectations the Bank of Canada could cut interest rates as early as next week to support an economy at risk of recession.
In the U.S. market, shares U.S. stocks sold off today as global equity investors nervousness heightened while Greece and its international creditors hold meetings that could determine the country’s future in the eurozone. The S&P 500 (INDEXSP:.INX) retreated 0.8 percent to 2,051.59 at 11:50 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) slid 0.9 percent to 17,527.74, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) sank 1.4 percent to 4,921.35. Most followed shares included Alcoa, A. Schulman, Fitbit, Advanced Micro, Horizon Pharma, Allergan, Tiffany, Shake Shack, Advance Auto Parts, American Apparel, and Plug Power.