Canadian shares fell to a five-week low after raw-materials miners slumped as gold hit the lowest level since January.
The resource-heavy benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) dropped 0.9 percent to 15316.53 at 12:43 p.m. in Toronto. The gauge had earlier touched 15311.41 the lowest intraday price since Aug. 15. Four shares declined for every stock that advanced with 9 out of 10 major falling.
The materials sub-index which includes mining shares was the biggest loser with a 1.7 percent slump as gold futures fell to an eight-month low. (TSE:ABX) surrendered 2 percent to C$17.17. (TSE:G) tumbled 2.4 percent to C$25.98.
Gold futures for December delivery fell 0.7 percent to $1217.80 an ounce at 11 a.m. on the Comex in New York.
The energy sector the main index's second most heavily weighted group declined 1.2 percent as West Texas Intermediate crude fell for a third day. Energy (TSE:SU) Canada's largest oil sands producer gave up 1.6 percent to C$42.37.
() an oil company operating in western Canada tumbled 4.3 percent to C$20.34 after it suspended its stock dividend program.
() which sells natural gas and electricity to residences fell 2 percent to C$5.85 after it agreed to sell Hudson Energy Solar its commercial solar development business to an unidentified energy company.
WTI for October delivery dropped 0.9 percent to $92.22 at 12:05 p.m. on the New York Mercantile Exchange.
Financials the index's most heavily weighted sector skidded 0.2 percent. () which has the heaviest weighting in the index slid 0.7 percent to C$82.54. Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value fell 0.6 percent to C$57.19.
() North America’s largest auto-parts supplier fell 3.7 percent to C$114.70 on reports a Brazilian antitrust watchdog visited one of its subsidiary offices.
TransCanada (TSE:TRP) the country’s second-biggest pipeline operator rose 1.7 percent to C$61.87. The company defended its corporate structure as the best way to maximize profits and dividend payouts to shareholders following a report suggesting some activist funds may push to break up the company to boost its share price.
The junior () decreased 0.6 percent to 960.43 at 12:34 p.m. in Toronto. () the heaviest stock in the gauge was steady at C$6.00.
In economic news Canada Canada’s inflation rate excluding eight volatile items quickened to the fastest since April 2012 last month on higher prices for new cars and telephone services. The 12-month core inflation rate accelerated to 2.1 percent in August from July’s 1.7 percent. The total consumer price index rose at a 2.1 percent rate for a second month.
In the U.S. market shares wavered as shares of Alibaba Group Holding began trading and corporate takeovers boosted investor optimism. The S&P 500 (INDEXSP:.INX) slid 0.1 percent at 12:15 p.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) edged up 0.1 percent while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) fell 0.4 percent. Most followed shares included Alibaba Dresser-Rand Concur VF Tibco Clorox McDonald's and Wal-Mart.
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