Canadian shares extended loss on Tuesday, tracking global markets after a 6 percent slide in Chinese stocks, following signs China’s economy is weakening further.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.3% to 14,202.49 at 12:02 p.m. in Toronto. Two shares declined for every issue that advanced as seven out of ten share groups were in the negative territory.
The materials sub-index, which includes mining shares, lost 1% as gold fell. Goldcorp (TSE:G), Canada’s largest gold miner by market value, was flat at C$19.49. Barrick Gold (TSE:ABX), Canada’s second-largest gold miner, gave back 3% to C$9.99.
Lucara Diamond (TSE:LUC) climbed 7.8% to C$1.79 after BMO Capital Markets Ltd., upgraded its rating on the diamond mining company to outperform.
Spot gold snapped initial gains and was down 0.5 percent at $1,111.71 an ounce, while U.S. gold for December delivery fell 0.7 percent to $1,110.20 an ounce.
The energy sector, the main index's second most heavily weighted group, declined 0.4% even as oil prices turned positive. Suncor Energy (TSE:SU), Canada's largest oil sands producer, fell 0.8% to C$36.30. Enbridge (TSE:ENB), Canada's largest pipeline company, lost 1.5% to C$55.03.
Trilogy Energy (TSE:TET) gained 4.9% to $4.06. The oil and natural gas producer said recent suspensions on two pipelines – one operated by TransCanada and another by Alliance – will reduce third quarter production by an estimated 1,200 barrels of oil equivalent per day.
U.S. crude futures were $0.36 higher at $42.23 a barrel, close to their lowest since early 2009.
Financials, the index's most heavily weighted sector, retreated 0.3%. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, surrendered 0.3% to C$75.17. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, rose 0.1% to C$51.83.
Absolute Software (TSE:ABT) jumped 9.8% to C$8.42 after the security and data risk management company announced plans to buy back C$50 million of its shares beginning next week.
CGI Group (TSE:GIB.A) was up 0.7% at C$50.60. Canada’s biggest technology company signed a 10-year bank-services outsourcing agreement with British Columbia-based Northern Savings Credit Union. The information technology consulting company also agreed to buy Northern Savings’ subsidiary Solutions Only Financial Solutions Ltd. The financial terms of the agreements were not disclosed.
In the U.S. market, shares swung between small gains and losses amid a mixed bag of quarterly results and an upbeat report on home construction in July.