Canada Stocks Fall Most in 3 Months

Canadian stocks fell the most in almost three months after earnings and sales by U.S. banks, manufacturers and industrial companies raised concern that the economy of Canada's biggest trade partner is headed for a slump, reported The Bloomberg.

Angiotech Pharmaceuticals Inc. lost one-third of its market value after U.S. partner Boston Scientific Corp. said sales plunged in the third quarter. Suncor Energy Inc. and Barrick Gold Corp. fell as oil and bullion declined from highs and profit at Caterpillar Inc., the world's largest maker of earthmoving machines, fell short of analyst estimates.

Canada's dollar rose to a 33-year high after the fastest increase in consumer prices in 16 months in September reinforced expectations the Bank of Canada will not cut interest rates. The Standard & Poor's/TSX Composite Index fell 330.37, or 2.3 percent, to 14,001.66 in Toronto, the most since July 24. The benchmark had its first weekly loss in six weeks.

``We're following the U.S. down,'' said Keith Summers, who helps oversee $811 million as chief investment officer at Stonegate Private Counsel in Toronto. ``There's nothing but bad news. Inflation and the higher dollar aren't helping.''

Angiotech fell 2.53, or 34 percent, to C$4.82, the most in almost 10 years and the worst performance in the S&P/TSX. The developer of a drug used to coat Boston Scientific Corp.'s heart stents dropped after its U.S. partner reported that sales of the artery-opening devices fell 22 percent in the third quarter.

As a consequence, Angiotech said in a separate earnings preview that it had a third-quarter loss and that sales in the current fiscal year will be less than expected and that earnings excluding some items may be reduced to $47 million in 2007, down from an earlier forecast of as mush as $95 million. The stocks was cut to ``sell'' from ``buy'' by Merrill Lynch & Co.

Crude oil fell 0.8 percent to $88.77 a barrel on speculation that U.S. supplies are sufficient to meet demand, after rising above $90 in New York for the first time,

EnCana Corp., the nation's largest natural-gas producer, fell C$2.60, or 4 percent, to C$62.85. Smaller rival Canadian Natural Resources Ltd. retreated C$2.96 to C$74.83. Suncor Energy, the world's second-largest oil-sands miner, dropped C$2.44 from a record to C$100.96.

A measure of energy shares, after gaining 4.1 percent this week before today as oil touched daily records, retreated 2.7 percent today. It helped the S&P/TSX climb 11 percent this year before today. Seven of the benchmark's 10 subgroups fell more than 2 percent today.

``Double-digit returns are over,'' said Summers. ``We had a good run and well move sideways until the uncertainty about the U.S. economy is resolved.''

A group of materials companies slid 2.7 percent.

Barrick Gold fell 93 cents to C$40.07. The world's largest bullion miner, whose shares reached a record on Oct. 15, declined as gold fell in New York after rising to the highest in 27 years.

Teck Cominco Ltd., the second-biggest zinc miner, dropped C$1.24 to C$46.70, for a weekly decline of 8.9 percent.

Potash Corp. of Saskatchewan Inc., the largest fertilizer maker by market value, fell C$5.4, or 5 percent, to C$103.42.

Financial shares also took their cue from the U.S., where Wachovia Corp. today reported its first earnings decline in six years, on a record $1.3 billion of writedowns for bad loans and mortgage-backed securities.

Royal Bank of Canada, the nation's largest lender by assets, declined C$1.28, or 2.4 percent, to C$53.28. Manulife Financial Corp., Canada's biggest insurer, fell 92 cents to C$40.95.

Research In Motion Ltd., the maker of the BlackBerry e-mail phones whose shares have tripled in a year, dropped C$3.07, or 2.7 percent, to C$110.96.

Rogers Communications Inc., Canada's biggest wireless phone and cable company, fell C$1.62, or 3.4 percent, to C$46.42.

Canadian National Railway Co., the country's largest railroad, dropped C$1.21, or 2.3 percent, to C$51.04