Canadian shares dropped for a third day, led by industrial shares, amid growing worries that slowing global growth will hurt demand for commodities.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.7% to 13,285.72 at 12:48 p.m. in Toronto. Almost three shares declined for every issue that advanced as nine out of ten share groups were in negative territory.
Industrial shares, the fourth-heaviest on the main index, surrendered 2.3%. CCL Industries (TSE:CCL.B) slipped 3% to $188.00. The maker of specialty packaging plans to shutter a manufacturing and distribution plant in Meridian, Mississippi, and move the facility’s label and binder production to Mexico.
Financials, the index's most heavily weighted sector, declined 0.4%. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, lost 0.4% to C$71.41. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, slid 0.3% to C$51.02.
RioCan Real Estate Investment Trust (TSE:REI.UN) rose 1.7% to C$24.68 after agreeing with Kimco Realty to unwind their Canadian joint venture, dividing their portfolio of 35 jointly owned properties.
The energy sector, the main index's second most heavily weighted group, inched down 0.1% as oil, Canada’s largest export, wavered after moving lower earlier in the day.
Suncor Energy (TSE:SU), Canada's largest oil sands producer, rose 0.8% to C$34.33. Canadian Natural Resources Limited (TSE:CNQ), Canada’s second-largest energy producer, fell 0.3% to C$25.79.
Calfrac Well Services (TSE: CFW) declined 3.9% to C$3.73. The provider of drilling services for oil and natural-gas producers slashed its quarterly dividend by 75%, pointing to the fallout of low oil and gas prices on the oilfield-services industry.
Total Energy Services (TSE:TOT) fell 1.8% to $14.44. The diversified energy services supplier said it has dropped plans for a C$2.90-per-share takeover offer for Strad Energy Services following Strad’s adoption of a shareholder rights plan.
Light, sweet crude for November delivery recently traded up 0.6% at $44.75 a barrel on the New York Mercantile Exchange, up from as low as $43.71 a barrel earlier in the day.
The materials sub-index, which includes mining shares, rose 2.5% as gold climbed for a second straight session. Goldcorp (TSE:G), Canada’s largest gold miner by market value, jumped 6.3% to C$17.79. Barrick Gold (TSE:ABX), Canada’s second-largest gold miner, added 8% to C$8.53.
Gold gained 1.3% to a three-week high of $1,147.
In currency, the Canadian dollar is in the midst of its worst losing streak in more than two years as global economic growth looks set to derail the country’s plan for an export-led recovery.
The currency plunged to an 11-year low after Norway, another large oil exporter, unexpectedly cut interest rates and said it may ease monetary policy even further.
The loonie fell as much as 0.7% to C$1.3501 per U.S. dollar, the lowest since June 2004. One loonie buys 74.82 U.S. cents.