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Canadian stocks were little changed, as an advance among the nation’s largest lenders offset oil’s decline in London after Iraq said the country is producing crude at a record pace, worsening a global supply glut.

National Bank of Canada gained 1 percent as financials rose a second day. Pacific Rubiales Energy Corp. and Lightstream Resources Ltd. declined at least 6.1 percent, the most among energy producers. Goldcorp Inc. (G) rose 0.6 percent after agreeing to buy Probe Mines Ltd. for about C$526 million ($440 million). Bombardier Inc. slid 5.2 percent after analysts at Bank of Nova Scotia said investors should avoid the stock.

The Standard & Poor’s/TSX Composite Index (SPTSX) rose 3.09 points, or less than 0.1 percent, to 14,312.50 at 4 p.m. in Toronto. The Canadian benchmark has lost 2.2 percent this year. U.S. markets are closed today for the Martin Luther King Jr. holiday.

Pacific Rubiales lost 6.1 percent and Lightstream Resources tumbled 8.9 percent as energy shares retreated 1.1 percent, the only industry among 10 industries in the equity gauge to decline. Trading volume was 61 percent lower than the 30-day average.

Crude prices fell from a one-week high in London. Iraq is pumping at a record pace of 4 million barrels a day, and will continue to boost exports this year amid a supply glut that’s pushed oil into a bear market, Oil Minister Adel Abdul Mahdi said at a press conference.

Detour Gold Corp. climbed 4.6 percent as raw-materials shares advanced 0.4 percent for a third day of gains.

Foreigners divested C$580 million in Canadian stocks in November, the first such sale in 15 months, according to data from Statistics Canada. Overseas investors bought C$4.29 billion more Canadian securities overall, led by C$4.75 billion in bond purchases, slower than October’s C$9.53 billion.

Bombardier Drops

“November was still in the early stages of negative sentiment on Canadian equities as energy price retreated,” said Avery Shenfeld, chief economist at CIBC World Markets, in a report today.

The Shanghai Composite Index (SHCOMP) tumbled the most in more than six years as regulators cracked down on margin lending. The nation’s largest brokerages slumped after regulators introduced a three-month ban on new loans to equity traders. China is Canada’s second-largest trading partner after the U.S.

Bombardier slumped 5.2 percent for a third day of losses. Turan Quettawala, analyst at Scotiabank, slashed the company’s rating to underperform, the equivalent of a sell. Bombardier has plunged 34 percent since halting its Learjet 85 program Jan. 15, cutting 1,000 jobs and booking $1.4 billion in pretax fourth-quarter costs.
Source: Bloomberg

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