Canadian stocks declined as financial shares fell to a five-month low and a rebound in commodity producers failed to erase the Standard & Poor’s/TSX Composite Index’s retreat.
Royal Bank of Canada (RY) slumped 0.8 percent as financial shares in the S&P/TSX declined 0.7 percent. Research In Motion Ltd. (RIM) tumbled 6.1 percent, dropping to the lowest level since 2003. Suncor Energy Inc. (SU), the nation’s largest energy provider, advanced 0.9 percent after tumbling as much as 1.5 percent. Commodity companies rebounded as the S&P GSCI Index of raw materials rallied 0.6 percent, reversing a 1.6 percent loss that had driven the measure to a level last seen in 2010.
The S&P/TSX fell 25.43 points, or 0.2 percent, to 11,335.77. The index dropped as much as 1.3 percent intraday.
“The problem with the Canadian market is very simple: the more worries there are about a global economic slowdown, the more problems for countries like ours and Australia that are so tied to commodities,” Sebastian van Berkom, a money manager at Van Berkom & Associates in Montreal, said in a telephone interview. The firm oversees C$1.8 billion ($1.7 billion). “When commodities go down, we go down more than elsewhere, and when they rally our market is good again.”
The S&P/TSX dropped 1.3 percent on the final day of last week after U.S. job growth slowed to a one-year low. The measure sank 6.3 percent in May, the biggest monthly decline since September.
To contact the reporter on this story: Steven Chambers in New York at email@example.com
To contact the editor responsible for this story: Nick Baker at firstname.lastname@example.org