Canada Stocks Fall as Energy Shares Slump on Factory Data

Canadian stocks declined, erasing gains for the year, as energy shares slumped after manufacturing gauges in China and the U.S. weakened.

Technology shares lost 1.8 percent as BlackBerry Ltd. dropped for a third straight day. Cameco Corp. dropped 4.9 percent after Canaccord Genuity Corp. analysts cut the stock’s rating. Semafo Inc. jumped 3.6 percent after Macquarie North America analysts said it may be a target for mergers and acquisitions.

The Standard & Poor’s/TSX Composite Index (SPTSX) decreased 123.37 points, or 0.9 percent, to 13,571.57 at 10:26 a.m. in Toronto. The gauge added 0.5 percent in January, the weakest start to a year since 2010.

The Institute for Supply Management’s factory index, a measure of U.S. manufacturing activity, decreased to 51.3 in January from 56.5 the prior month, the Tempe, Arizona-based group’s report showed today. Readings above 50 indicate expansion.

China’s Purchasing Managers’ Index decreased in January as output and orders slowed. The gauge was at 50.5 last month, the National Bureau of Statistics and China Federation of Logistics and Purchasing said Feb. 1 in Beijing. The reading in December was at 51. A number above 50 indicates expansion.

To contact the reporter on this story: Callie Bost in New York at cbost2@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.