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Canadian Stocks Decline as G-20 Fails to Reach Agreement on IMF

Canadian stocks fell, completing a weekly drop, after the country reported a drop in jobs and the Group of 20 failed to agree on boosting the International Monetary Fund’s resources to fight Europe’s debt crisis.

Royal Bank of Canada (RY), the country’s largest lender by assets, decreased 2.4 percent as the unemployment rate rose from a post-2008 low. Canadian Natural Resources Ltd. (CNQ), the country’s second-largest energy company by market value, lost 1.3 percent as energy stocks retreated. First Quantum Minerals Ltd. (FM), Canada’s second-biggest publicly traded copper producer, gained 2.1 percent after an analyst at Toronto-Dominion Bank raised his share-price estimate.

The Standard & Poor’s/TSX Composite Index slipped 60.10 points, or 0.5 percent, to 12,408.25. The index extended its weekly decline to 0.9 percent.

“Nothing has changed -- it’s all on Europe,” Philip Petursson, managing director of the Portfolio Advisory Group at Manulife Financial Corp. (MFC)’s money-management unit, said in a telephone interview from Toronto. The unit oversees $210 billion. “This risk of Europe is holding the markets back from an extension of the rally in October. Until we get greater clarity, we’ll still be trading in a range.”

Financial companies led this week’s S&P/TSX declines as European officials debated the bailout of Greece and companies including Sun Life Financial Inc. reported earnings that trailed analysts’ estimates. Canada’s stock benchmark gauge is set to underperform the S&P 500 for the first year since 2003.

Canadian Jobs

Canadian payrolls decreased by 54,000 jobs in October, Statistics Canada said today, in the biggest monthly decline since February 2009. Most economists in a Bloomberg survey had forecast a gain in employment and none estimated a loss of more than 20,000 positions. The unemployment rate climbed to 7.3 percent from 7.1 percent.

Royal Bank fell 2.4 percent to C$45.85 to complete its biggest weekly plunge since February 2009. Toronto-Dominion, Canada’s second-largest lender by assets, declined 1.3 percent to C$72.95. Manulife, the country’s biggest insurer, dropped 2.4 percent to C$12.79.

Mortgage insurer Genworth MI Canada Inc. (MIC) jumped 7.4 percent, the most since it began trading in July 2009, to C$23.70 after raising its quarterly dividend. The company also said it will pay a special dividend of 50 Canadian cents a share.

G-20 leaders meeting in Cannes, France, were unable to agree on a way to bolster the IMF’s ability to stop the spread of Europe’s debt crisis, German Chancellor Angela Merkel said.

Streak Ends

The S&P/TSX Energy Index completed its first weekly drop since Sept. 23, ending the longest streak of weekly gains since May 2009. Canadian Natural lost 1.3 percent to C$37.73 after surging 9.3 percent yesterday. Suncor Energy Inc. (SU), the country’s largest oil and gas producer, decreased 0.9 percent to C$32.89. Pacific Rubiales Energy Corp. (PRE), which operates in Colombia, retreated 5.6 percent to C$21.65 after saying the country’s tax agency inspected its Bogota offices.

Open Range Energy Corp. (ONR), a natural gas explorer, surged 18 percent from yesterday’s adjusted close to C$2.08 after the spinoff of Poseidon Concepts Corp. became effective. Poseidon, formerly Open Range’s services and supply business, advanced to C$11.52 after opening at C$11.20.

Exall Energy Corp. (EE), which explores for oil in Alberta, rallied 31 percent, the most since December 2008, to C$1.86 after reporting a new discovery.

Nickel Potential

First Quantum increased 2.1 percent to C$22.81, extending its three-day climb to 15 percent. Greg Barnes, an analyst at TD, raised his 12-month share-price estimate to C$29 from C$27, citing the potential of First Quantum’s Enterprise nickel project in Zambia.

Alamos Gold Inc. (AGI), which mines in Mexico, dropped 5.3 percent to C$17.06 after its third-quarter earnings trailed the average analyst estimate in a Bloomberg survey.

DragonWave Inc. (DWI), which makes wireless data products, jumped 42 percent, the most since May 2008, to C$5.14 after agreeing to buy Nokia Siemens Networks’ microwave-transport business for 15 million euros ($20.7 million) in cash and shares.

Westport Innovations Inc. (WPT), which develops natural gas engine technologies, rose 6.4 percent to C$29.79 a day after CNBC’s Jim Cramer recommended the shares.

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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