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Canadian Stocks Fall After Chinese Trade Data Trail Forecasts

Canadian stocks fell, breaking a two-day winning streak, as oil and metals prices dropped after lower-than-estimated Chinese exports spurred concern about the global economy.

Barrick Gold Corp. (ABX), the world’s largest gold producer, fell 2 percent as the metal slipped. Suncor Energy Inc. (SU), Canada’s largest oil and gas producer, lost 1.6 percent as crude declined for a second day. Royal Bank of Canada, the nation’s biggest lender, lost 2.1 percent after JPMorgan Chase & Co. reported a slump in investment banking and trading.

The Standard & Poor’s/TSX Composite Index dropped 118.07 points, or 1 percent, to 11,911.89. It’s gained or lost at least 100 points on six straight days, the longest streak since October 2009.

“You had some key import/export data out of China that were somewhat discouraging,” Brian Huen, a money manager at Red Sky Capital Management Ltd. in Toronto, said in a telephone interview. The firm oversees C$54 million ($53 million). “If the Chinese economy slows down, demand for commodities like copper, oil, zinc and nickel and all the other stuff we export will be impacted.”

The index gained 7.6 percent in the previous five days after closing at a 14-month low on Oct. 4. During the same period, copper advanced 9.3 percent and crude rallied 13 percent as the U.S. dollar declined. Energy and raw-materials companies make up 47 percent of Canadian stocks by market value, according to Bloomberg data.

China’s Exports

Chinese exports increased 17 percent in September from last year, and imports climbed 21 percent. Both figures trailed the median estimates of economists in Bloomberg surveys. The U.S. Dollar Index rebounded from a three-week low.

Gold producers in the S&P/TSX dropped for a second day. Barrick declined 2 percent to C$48. Goldcorp Inc. (G), the world’s second-largest producer of the metal by market value, lost 1.5 percent to C$47.90. Silver Wheaton Corp. (SLW), Canada’s fourth- biggest precious-metals company by market value, decreased 4.4 percent to C$31.89 as silver retreated 3.4 percent.

Premier Gold Mines Ltd. (PG), which explores in Ontario and Nevada, plunged 7.2 percent to C$5.30 after saying it will raise C$30.5 million in an equity offering. Volta Resources Inc. (VTR), which explores for gold in Africa, surged 15 percent, the most since June 2010, to C$1.32 after reporting drilling results.

31% Surge

Copper fell 2.5 percent after rallying 3.1 percent yesterday. First Quantum Minerals Ltd. (FM), the country’s second- largest publicly traded copper producer, declined 4.2 percent to C$16.48 after a 31 percent surge in the previous six days. Teck Resources Ltd. (TCK/B), Canada’s largest base-metals and coal producer, dropped 1.6 percent to C$35.44. Quadra FNX Mining Ltd. (QUX), which operates in the U.S., Canada and Chile, slumped 7.2 percent to C$10.22.

West Fraser Timber Co., Canada’s largest forestry company, rallied 6.2 percent to C$39.28 after Paul Quinn, an analyst at Royal Bank of Canada, raised his rating on the shares to “outperform” from “sector perform.”

Crude futures lost 1.6 percent on the New York Mercantile Exchange. Suncor decreased 1.6 percent to C$29.14. Cenovus Energy Inc., the country’s fifth-largest energy company, retreated 1.6 percent to C$34.26. Athabasca Oil Sands Corp. (ATH), PetroChina Co.’s partner in oil-sands development, fell 3.8 percent to C$12.12 after jumping 17 percent Oct. 11 and yesterday.

Ivanhoe Soars

Oil-sands developer Ivanhoe Energy Ltd. soared 24 percent, the most since December 2008, to C$1.45. Hilary McMeekin, a company spokeswoman, said she was unaware of the reason for the jump in a telephone interview.

All S&P/TSX banks and all S&P/TSX insurance stocks retreated. Royal Bank of Canada (RY) lost 2.1 percent to C$47.82. Bank of Nova Scotia (BNS) decreased 1.9 percent to C$52.18. Manulife Financial Corp. (MFC), North America’s fourth-largest insurer, fell 3 percent to C$12.46.

Magna International Inc. (MG), Canada’s biggest auto-parts maker, dropped 4.6 percent to C$37.18 after saying the U.S. Justice Department has requested documents from Magna’s Cosma International unit as part of an antitrust investigation of the industry. The company is cooperating with the government, Magna said in a statement.

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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