Canadian stocks fell a fourth day, after dropping the most in a month, as railway shares tumbled after oil touched a five-year low and a gauge of Chinese manufacturing dropped more than economists forecast.
Canadian Pacific Railway Ltd. and Canadian National Railway Co., which ship crude by rail, sank at least 4%. Penn West Petroleum Ltd. tumbled 8.7% after analysts at Bank of Montreal cut their rating for the stock. Surge Energy Inc. lost 10% to pace declines among energy producers. Iamgold Corp. and Argonaut Gold Inc. each jumped as gold and silver prices rebounded.
The Standard & Poor’s/TSX Composite Index fell 160.95 points, or 1.1%, to 14,583.75 at 11:13 a.m. in Toronto, headed for a three-week low. The index has lost 3.3% in four days. The S&P/TSX is up 7% this year, the 10th-best performer among developed markets in the world.
Canadian Pacific declined 4% to C$211.83 and Canadian National tumbled 4.9% to C$77.27 as industrial stocks retreated 3.2% as a group to a five-week low. The industry has slumped 6.8% in the past two sessions.
Surge Energy lost 10% to C$4.51, the lowest since May 2013. The S&P/TSX Energy Index fell 2.8% to a July 2013 low. The gauge has retreated 13% in six days.
Seven of 10 industries in the S&P/TSX fell on trading volume 53% higher than the 30-day average today.
The Chinese government’s Purchasing Managers’ Index fell to an eight-month low of 50.3 in November, compared with the 50.5 median estimate of analysts in a Bloomberg survey and October’s 50.8. Readings above 50 indicate expansion.
The government ordered factories in Beijing and surrounding regions to shut down during the Asia-Pacific Economic Cooperation forum to curb pollution.
Iamgold jumped 13% to C$2.53 and Argonaut Gold surged 6.8% to C$1.96 after gold for February delivery rallied 1.5% in New York, headed for the biggest advance in two weeks.
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