Canadian stocks fell after Cisco Systems Inc. forecast profit below analysts’ estimates and European bond yields rose on concern over budget deficits.
Toronto-Dominion Bank, Canada’s second-biggest lender by assets, retreated 0.8 percent as financial companies slumped for a third day. Suncor Energy Inc., Canada’s largest oil and gas producer, lost 0.9 percent as natural gas prices decreased. Canadian Tire Corp., the country’s fifth-largest retailer by market value, advanced 7 percent after reporting per-share earnings that topped the average analyst estimate by 21 percent, excluding certain items.
The Standard & Poor’s/TSX Composite Index fell 46.26 points, or 0.4 percent, to 12,896.38 as of 10:29 a.m. in Toronto.
The S&P/TSX dropped 3.9 percent in the first half of the year, in part on concern a European debt crisis would derail the global recovery. Since then, the benchmark has jumped 14 percent, led by raw-materials producers, as commodities have surged on speculation central-bank stimulus measures would weaken the U.S. dollar.
Today, Irish and Spanish government bonds each declined for a 13th day as French Foreign Minister Christine Lagarde said investors must share in the cost of safeguarding sovereign debt.
Royal Bank of Canada, the country’s largest bank, slipped for a fourth day, losing 0.9 percent to C$53.78. TD decreased 0.8 percent to C$73.04. Sun Life Financial Inc., Canada’s third- biggest insurer, retreated 1.1 percent to C$28.98.
S&P/TSX energy stocks fell as natural gas dropped on forecasts for milder weather in the U.S. and oil fluctuated after closing at a two-year high yesterday.
Suncor dropped 0.9 percent to C$36. Talisman Energy Inc., an oil and gas producer with operations in North America, the North Sea and Indonesia, slipped 0.6 percent to C$19.86. Pacific Rubiales Energy Corp., which produces oil and gas in Colombia, declined for a fifth day, slumping 2.1 percent to C$31.46
BlackPearl Resources Inc., which produces oil in Canada, surged 13 percent to C$5.23 after announcing the results of an independent resource assessment on its core properties. Analysts at Macquarie Group Ltd., Bank of Nova Scotia and FirstEnergy Capital Corp. raised their share-price estimates on the company.
Gold stocks retreated as the U.S. dollar climbed for a fifth day against a basket of world currencies.
Barrick Gold Corp., the world’s largest producer, decreased 0.7 percent to C$51.49. Goldcorp Inc., the world’s second- biggest producer by market value, lost 0.6 percent to c$47.16. Eldorado Gold Corp., Canada’s fifth-largest gold-mining company by market value, slumped 1.6 percent to C$17.38.
Technology companies fell after Cisco, the world’s largest maker of computer networking equipment, forecast second-quarter earnings at least 16 percent below the average analyst estimate.
BlackBerry maker Research In Motion Ltd. dropped 1.3 percent to C$57.84. Celestica Inc., which makes electronics for companies including Cisco and RIM, declined 3 percent to C$8.97.
Canadian Tire and Caterpillar dealer Finning International Inc. rallied after topping analysts’ profit forecasts.
Canadian Tire surged 7 percent to C$63 after raising its quarterly dividend 31 percent to 27.5 cents a share as of the dividend payable March 1. Earlier today, the stock jumped as much as 9.4 percent, the most intraday since 2008
Finning rose 5.4 percent from a two-year high to C$26.36. The company’s third-quarter earnings surpassed the average of 13 analyst estimates by 40 percent, excluding certain items, the most since at least 2005.
CML Healthcare Income Fund, which operates medical-imaging and laboratory-testing clinics, sank 8 percent, the most intraday in two years, to C$11.23. The company announced third- quarter earnings of 23 cents a share, excluding certain items, compared with analyst forecasts of 25 cents a share and 27 cents a share.
To contact the editor responsible for this story: Nick Baker at email@example.com.