Royal Bank of Canada (RY) and Toronto-Dominion Bank (TD) dropped 0.3 percent. Research In Motion Ltd. (RIM) fell 3.6 percent after Nokia Oyj, another phone manufacturer that’s lost market share to Apple Inc. and Google Inc., reduced its earnings forecast and announced as many as 10,000 job cuts. Oil and natural gas exploration companies Crew Energy Inc. (CR) and Celtic Exploration Ltd. (CLT) soared at least 7.9 percent.
The Standard & Poor’s/TSX Composite Index declined 31.45 points, or 0.3 percent, to 11,466.42. The benchmark gauge is down 0.3 percent this week before Greece’s weekend election that may determine whether the nation stays in the euro.
“Every rational person knows what the politicians need to do and that is get as much ink and paper as they can and print money,” said Keith McLean, a managing partner at GMP Investment Management LLC. in Toronto. The firm manages C$650 million ($634 million). “That will be a boon for oil, a boon for gas, a boon for gold and all commodities. The Canadian market will be a great one to get back to once they act.”
Canadian shares briefly erased losses after Reuters reported that central banks were prepared to coordinate their actions to boost liquidity to financial markets bracing for the Greek elections.
Stocks in Canada swung between gains and losses throughout the day, as European stocks fell for a fourth day. Borrowing costs surged for Italy at its first bond auction since Spain requested a 100 billion euro ($126 billion) bank rescue. U.S. jobless claims climbed by 6,000 to 386,000 in the week ended June 9. Economists projected claims would fall to 375,000, according to the median estimate in a Bloomberg News survey.
Financial shares in the S&P/TSX fell 0.4 percent. While Canada’s financial system has fared well and conditions in the country remain “very stimulative,” deepening turmoil in Europe may boost funding costs for the nation’s banks and generate losses from assets linked to the euro zone, the Bank of Canada said today in its semi-annual Financial System Review. Non- performing loans at Canadian banks would also increase if growth slows.
Royal Bank of Canada, the nation’s largest lender, declined 0.3 percent to C$50.85, snapping two days of gains. Toronto- Dominion Bank, the second-largest lender, lost 0.3 percent to C$78.79. Manulife Financial Corp. dropped 2.1 percent to C$10.57.
Research In Motion declined 3.6 percent to C$10.61 and is down 28 percent for the year.
Energy companies advanced as oil rose as much as 2.2 percent on speculation the worse-than-forecast U.S. report on jobless claims would prompt the Federal Reserve to loosen monetary policy to spur growth. Crew Energy rose 9.3 percent to C$6.45. Celtic Exploration advanced 7.9 percent to C$11.96.
Dollarama Inc. (DOL) jumped 3.1 percent to C$62.47, bringing its two-day gain to 9.9 percent after the discount retailer reported first-quarter earnings that beat analysts’ estimates. The stock has surged 40 percent this year.
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