Canadian Stocks Fall as Oil, Gold Drop After Libyan Rebel Gains

Canadian stocks fell the most in 12 days, led by producers of energy and precious metals, as oil and gold dropped after Libyan rebels recaptured territory from Muammar Qaddafi’s forces.

Kinross Gold Corp. (K), Canada’s third-largest gold producer, declined 3.5 percent as the metal retreated for a third day. Vector Aerospace Corp. (RNO), which repairs helicopters and engines, surged 13 percent after agreeing to be bought by European Aeronautic Defence & Space Co. Suncor Energy Inc. (SU), Canada’s biggest oil and gas producer, slipped 1.8 percent as crude futures fell the most in nine days.

“The Libyan situation is becoming more clear with the coalition forces assisting the rebel side,” said Irwin Michael, who helps manage C$1 billion ($1 billion) as a money manager at ABC Group of Funds in Toronto. “There’s less concern of there being a bottleneck with oil supply.”

The Standard & Poor’s/TSX Composite Index lost 146.66 points, or 1 percent, to 13,892.73.

The index decreased 0.7 percent this month through March 25, led by BlackBerry maker Research In Motion Ltd. and uranium producer Cameco Corp. (CCO), as RIM missed analysts’ earnings estimates and the Japanese nuclear crisis led to a plunge in uranium prices. The S&P/TSX has advanced eight straight months.

The Thomson Reuters/Jefferies CRB index of commodities fell for the first time in nine days today. A U.S. Commerce Department report that consumer spending increased more in February than most economists had forecast weighed on precious- metal prices.

Mining Shares

Kinross declined 3.5 percent to C$15.21. Barrick Gold Corp. (ABX), the world’s largest gold producer, lost 1.5 percent to C$49.74. Eldorado Gold Corp. (ELD), which mines in China and Turkey, dropped 3.1 percent to C$15.49.

Energy companies retreated as oil futures fell for a third day. Suncor lost 1.8 percent to C$43.33. Nexen Inc. (NXY), an oil and gas producer with operations on five continents, slipped 3.1 percent to C$23.61. Crescent Point Energy Corp. (CPG), which produces oil in western Canada, dropped 3.1 percent, the most since June, to C$46.46.

Oil producer TransGlobe Energy Corp. rallied 5 percent to C$14.30 after buying a concession in Egypt for $60 million.

Radiation Crisis

Uranium producers declined as radiation reached fatal levels outside of Japan’s Fukushima Dai-Ichi nuclear power plant.

Cameco decreased 4.2 percent to C$29.29. Uranium One Inc. (UUU), a mining company controlled by Moscow-based ARMZ Uranium Holding, slumped 10 percent to C$3.90. Denison Mines Corp. (DML), which produces uranium in the U.S., retreated 6 percent to C$2.51.

Producers of metals used in industry fell as copper dropped on concern Japanese carmakers may have to suspend production in China.

Teck Resources Ltd., Canada’s biggest base-metals and coal producer, declined 2.2 percent to C$51.50. First Quantum Minerals Ltd., the country’s second-largest publicly traded copper producer, lost 4.2 percent to C$120.60. European Goldfields Ltd. (EGU), which mines base and precious metals in Greece, tumbled 6.1 percent to C$12.65.

Vector Aerospace soared 13 percent to C$12.83 after accepting EADS’s bid of C$13 a share in cash. Vector Aerospace had jumped 16 percent last week to a record high on speculation of an agreement.

Lumber producers rallied after the U.S. National Association of Realtors said pending sales of existing homes rose 2.1 percent in February.

West Fraser

West Fraser Timber Co., Canada’s largest lumber producer, surged 5.7 percent to C$57.55, the highest in at least 24 years. Canfor Corp. (CFP) gained 3.1 percent to a six-year high of C$14.43.

Yoga-wear retailer Lululemon Athletica Inc. (LULU) soared 7.8 percent to a record C$83.32 in Toronto Stock Exchange trading. James Cramer praised the company on his “Mad Money” show on CNBC March 25.

BlackBerry maker Research In Motion Ltd. (RIM) decreased 2 percent to a five-month low of C$54.64 after losing a round in a legal dispute with Eastman Kodak Co. over patents. The U.S. International Trade Commission said March 25 it will review a judge’s findings that the BlackBerry and Apple Inc.’s iPhone don’t violate a Kodak imaging-software patent.

To contact the reporter on this story: Matt Walcoff in Toronto at mwalcoff1@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

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