Canaccord Financial Falls After Analyst Downgrade: Toronto Mover

Canaccord Financial Inc. (CF), Canada’s largest non-bank brokerage, fell the most in five months after a Bank of Nova Scotia analyst downgraded the shares.

Canaccord fell 6.4 percent to C$7.15 at 1:23 p.m. in Toronto. Earlier it touched C$7.02, the biggest intraday drop since Aug. 9. About 117,000 shares changed hands, 61 percent of the three-month daily average.

Phil Hardie, an analyst at Scotiabank Global Banking and Markets, downgraded the shares of Toronto-based Canaccord to sector perform, the equivalent of a hold. Hardie, the No. 1- ranked analyst on the stock according to the Bloomberg Absolute Return Rank, declined to immediately share the research report, citing company policy.

Canaccord will post results for its fiscal third quarter on Feb. 6. The brokerage posted its third straight quarterly loss in November as it absorbed costs from closing wealth-management offices as equity-trading volumes slumped.

Canaccord is expected to earn 15 cents a share in the third quarter, the average estimate of three analysts polled by Bloomberg. That compares to 1 cent a share in the previous period.

Scott Davidson, a Canaccord spokesman, declined to comment on the stock decline.

To contact the reporters on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net; Doug Alexander in Toronto at dalexander3@bloomberg.net

To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net; David Scheer at dscheer@bloomberg.net

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