Canada Stocks Slide on Gold, Copper, Oil; Barrick, Potash Drop

Canadian stocks fell, sending the main equity index to its biggest two-day drop in 17 months, led by commodity producers on concern that slower global growth will reduce demand for Canadian resource exports.

Barrick Gold Corp. and Potash Corp. Of Saskatchewan Inc. paced the retreat as gold had its biggest drop in 13 months, copper declined to the lowest since March, and crude oil fell more than $1 a barrel, dimming the companies' profit outlook.

The Standard & Poor's/TSX Composite Index fell 264.86, or 1.9 percent, to 13,604.96 in Toronto. The benchmark has fallen 3.7 percent in two days, the most since June 13, 2006. Losses were limited as Cognos Inc. gained on a takeover offer from International Business Machines Corp. and finance shares rose.

``People are taking any old excuse to sell,'' said Peter Hodson, who helps manage $6.44 billion (C$6.23 billion) as senior portfolio manager at Sprott Asset Management Inc. in Toronto. ``I'm buying nothing except my favorites on the way down.''

A measure of raw-materials stocks dropped 6.4 percent, the most in 10 years. Together with energy shares, the industry accounts for more than two-fifths of the S&P/TSX's value.

Gold slid 3.2 percent in New York after rallying 11 of the past 12 weeks to a 27-year high on Nov. 7. Copper fell to a seven-month low in New York after imports declined in China, the world's largest user of the metal. Crude oil dropped more than $1 a barrel on forecasts for reduced U.S. consumer spending and slowing growth of Chinese oil imports.
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