Canada’s benchmark index declined today
Canadian stocks fell, sending the Standard & Poor’s/TSX Composite Index (SPTSX) to an eight-month low, as concern about energy demand pushed oil producers lower for the 10th straight day, the longest streak since 1997.
Energy stocks in the index lost 2 percent as a group, the biggest loss among 10 industries. Precision Drilling Corp. and Canadian Natural Resources Ltd. (CNQ) slid at least 3.1 percent. Air Canada (AC/B) lost 4.3 percent, following a broad selloff in airlines on concern over the spread of Ebola.
The S&P/TSX sank 0.8 percent to 14,113.55 at 12:32 p.m. in Toronto, the ninth decline in 11 days. Earlier, the index fell 1.8 percent, briefly reaching a 10 percent drop from its record on Sept. 3. The S&P/TSX is still up 4 percent for 2014.
“Part of the selloff is energy related, but then you have the other challenge that the areas of the TSX not related to commodities were perhaps overvalued,” said Philip Petursson, director of institutional equities at Manulife Asset Management Ltd. in Toronto. His firm manages about $281 billion. “You’ve got a valuation adjustment going on at the same time as energy prices are dropping substantially.”
Six of 10 industries in Canada’s benchmark index declined today. Trading volume was 64 percent higher than the 30-day average at this time of day, according to data compiled by Bloomberg.