Canadian Stocks Decline as Metals, Crude Oil Prices Drop

June 25 (Bloomberg) -- Canadian stocks declined for a fourth time in five days, led by such energy and raw-materials producers as Talisman Energy Inc. and Teck Cominco Ltd., as prices for crude oil, copper and gold declined.

Oil futures fell from a nine-month high in New York after a strike in Nigeria ended. Copper dropped a third day in London on concern that Asian demand may be slowing, while gold declined on speculation a drop in European equity markets may cut demand for bullion.

Raw-materials, energy and other commodities make up more than half of Canada's exports. Resource-related stocks account for nearly half of the main Canadian stock index's value and helped lift it to a record last week on takeovers and higher commodity prices.

The Standard & Poor's/TSX Composite Index fell 70.75, or 0.5 percent, to 13,915.28 as of 9:42 a.m. in Toronto. The benchmark has declined 1.8 percent from its June 18 record of 14,176.42,

Shares of Talisman Energy, which produces oil and gas in the North Sea, dropped 41 cents to C$21.05. Canadian Natural Resources Ltd., the nation's second-largest natural-gas company, declined C$1.42 to C$69.52. Suncor Energy Inc., the second-largest oil-sands producer, fell C$1.77 to C$94.32.

Teck Cominco, a miner of zinc and copper, slid C$1.07 to C$47.13.

Barrick Gold Corp., the biggest bullion miner, retreated 44 cents to C$31.36.

Oil, Gas

Measures of energy and raw-materials shares fell 1.4 percent and 0.7 percent, respectively, today. They account for more than 45 percent of the S&P/TSX's value and have been among the best performers this year among 10 industry groups.

Takeover speculation lifted some shares and helped limit losses in the broader market.

BCE Inc. rise 40 cents to C$40.56. Bidders are expected to submit their offers for Canada's second-largest phone company on June 26, with a decision being urged within 72 hours by company management and BCE's adviser, Goldman Sachs Group Inc., the Globe and Mail reported, citing unidentified people familiar with the situation. BCE spokesmen Mark Langton didn't immediately return a call from seeking comment

The Ontario Teachers' Pension Plan, which has teamed up with Providence Equity Partners Inc., confirmed on June 22 that it will submit a bid, the Globe and Mail reported, without saying where it got the information. In addition to Ontario Teachers, two other private-equity groups, the Canada Pension Plan Investment Board, which includes Kohlberg Kravis Roberts & Co., and Cerberus Capital Management LP may also submit bids, the newspaper said.

Shares of Telus Corp. declined 52 cents to C$63.50. Canada's second-largest phone company, which may also bid for rival BCE in what would be the biggest takeover in Canada, was downgraded to ``sector perform'' from ``sector outperform'' by Robert Goff at Haywood Securities Inc.

Goff was at least the third analyst in the past week to cut his recommendation on the stock, on concern a purchase would slow revenue and profit growth at Telus's wireless unit, which has outpaced that of BCE. Analysts at GMP Securities and National Bank Financial reduced their recommendations on June 21.