Canadian shares retreated for a seventh day, amid growing concerns the global economy is halting after Chinese shares slumped more than 8 percent, the most in eight years.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 1 percent to 14,033.50 at 12:32 p.m. in Toronto. Seven shares declined for every issue that advanced as nine out of ten share groups were in the negative territory.
China’s Shanghai Composite Index plunged 8.5 percent, the biggest slump since February 2007. Today’s retreat shattered the sense of calm that had fallen over mainland markets after stocks had earlier rallied on unprecedented government intervention.
The energy sector, the main index's second most heavily weighted group, fell 1.8 percent as oil futures hit four-month lows. Suncor Energy (TSE:SU), Canada's largest oil sands producer, fell 1.3 percent to C$25.03. Enbridge (TSE:ENB), Canada's largest pipeline company, sank 1.7 percent to C$54.50.
U.S. crude slipped 1.2 percent to $47.59, after hitting $47.20, its lowest since April 1.
The materials sub-index, which includes mining shares, fell 0.9 percent as gold lost ground today, moving closer to last week's 5-1/2 year lows below $1,100 per ounce.
Goldcorp (TSE:G), Canada’s largest gold miner by market value, dropped 2.1 percent to C$16.98. Barrick Gold (TSE:ABX), the second-largest, slid 0.1 percent to C$9.46.
First Majestic Silver (TSE:FR) sank 10.7 percent to C$4.18. The Vancouver company said it has agreed to buy SilverCrest Mines (TSE:SVL) in a friendly deal that values SilverCrest shares at C$1.30 each, a 35 percent premium to the miner’s closing price on Friday. First Majestic said it will issue about 32.8 million shares in the deal, for a value of about C$154 million.
U.S. gold for August delivery was up 0.6 percent at $1,092 an ounce.
Financials, the index's most heavily weighted sector, tumbled 1.3 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, decreased 1.6 percent to C$73.37. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, gave back 1.3 percent to C$51.19.
Capital Power (TSE:CPX) advanced 3 percent to C$22.32. The power company raised its dividend by 7.4 percent to a new quarterly level of 36.5 Canadian cents a share.
Restaurant Brands International (TSE:QSR) jumped 3.9 percent to C$54.24. The parent of Burger King and Tim Hortons posted a stronger-than-expected second-quarter profit as both chains recorded same-store sales growth driven partly by new product launches.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) inched down 1.2 percent to 585.67.
In the U.S. market, shares were lower in late-morning trading today, following a steep sell-off in China and other global markets. The S&P 500 (INDEXSP:.INX) slipped 0.5 percent to 2,068.88 at 11:44 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) sank 0.7 percent to 17,440.59, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) declined 0.8 percent to 5,046.96. Most followed shares included Teva, Allergan, Mylan, Delta, Norfolk Southern, McGraw Hill, Box, Qualcomm, Amazon.com, Fiat Chrysler, and Beacon Roofing Supply.