Canadian shares fell for a fourth session, touching the lowest intraday level since December, as losses in world equity markets expanded over anxiety about global growth.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) sank 1.2% to 13,863.03 at 12:14 p.m. in New York. More than two shares declined for every issue that advanced as nine out of ten share groups were in the negative territory. The gauge has lost 5.1% this year.
The energy sector, the main index's second most heavily weighted group, skidded 0.4% even as oil prices rose from six-year lows on Thursday. Suncor Energy (TSE:SU), Canada's largest oil sands producer, slipped 0.7% to C$34.91. Enbridge (TSE:ENB), Canada's largest pipeline company, gave up 2.3% to C$52.59.
Light, sweet crude for September delivery recently traded up 0.9% to $41.17 a barrel on the New York Mercantile Exchange.
Financials, the index's most heavily weighted sector, dipped 1.2%. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, tanked 2% to C$74.30.
Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, gave up 1.3% to C$51.28.
The materials sub-index, which includes mining shares, gained 1.4% as gold hit its highest in nearly five week. Goldcorp (TSE:G), Canada’s largest gold miner by market value, added 3.6% to C$20.57. Barrick Gold (TSE:ABX), Canada’s second-largest gold miner, jumped 7% to C$11.06.
U.S. gold for December delivery was up 1% at $1,139.40 an ounce.
Valeant Pharmaceuticals (TSE:VRX) fell 2.9% to C$310.79. Canada’s largest drug-maker said it will pay $1bn for Sprout Pharmaceuticals Inc., the closely held company that just won approval to sell the first drug that aims to boost a woman’s libido.
In economic news, Statistics Canada said on Thursday that the value of Canadian wholesale trade rebounded in June after a drop in May, rising 1.3 percent on broad strength across most of the economy.
In the U.S., shares moved sharply lower for a third session, led by a slump in technology, consumer and financial stocks.