Canadian Stocks Hit Lowest Level Since Sept. 2016

(Bloomberg) -- Canadian stocks fell to their lowest close since September 2016 with every sector in the red, as crude prices settled below $50 a barrel for the first time in 14 months.

The S&P/TSX Composite Index lost 1.6 percent to 14,362.65. Health-care stocks led the retreat, losing 4.6 percent as pot shares retreated amid a broader risk-off mood. Aurora Cannabis Inc. fell 5.5 percent.

The energy sector slid 2.3 percent to the lowest since February 2016 as West Texas Intermediate prices fell 2.6 percent amid rising U.S. inventories. Cenovus Energy Inc. lost 4 percent while Canadian Natural Resources Ltd. fell 3.3 percent.

In other moves:

Stocks

  • Shopify Inc. lost 7.4 percent, bringing its two-day decline to 19 percent, the most ever. The company said Friday that it would sell 2.6 million shares to strengthen its balance sheet, its second equity capital raise this year
  • Katanga Mining Ltd. slid 9.5 percent. The company has agreed to settle with Canadian regulators over an investigation into its accounting practices
  • Superior Plus Corp. added 1.3 percent after RBC Capital Markets upgraded the stock to outperform

Commodities

  • Western Canada Select crude oil traded at a $12.50 discount to WTI
  • Gold rose 0.8 percent to $1,247.40 an ounce, the highest since July

FX/Bonds

  • The Canadian dollar weakened 0.2 percent to C$1.3414 per U.S. dollar, the weakest since June 2017
  • The Canada 10-year government bond yield fell 5 basis points to 2.05 percent, the lowest since January

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