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Canada Stocks Have Biggest Weekly Drop Since June on Jobs Data

Canadian stocks fell, giving the benchmark equities index the worst weekly drop since June, as employment declined and BlackPearl Resources Inc. tumbled for a second day after cutting its estimate for oil production.

BlackPearl slid 11 percent, adding to yesterday’s 9.5 percent slump. CIBC cut the stock’s rating to sector perform, the equivalent of neutral, from sector outperform. Crew Energy Inc. and Bellatrix Exploration Ltd. dropped at least 5 percent, leading declines among oil companies in the Standard & Poor’s/TSX Composite Index. (SPTSX) Cineplex Inc., an operator of movie theaters, gained 3.1 percent after RBC Capital Markets recommended buying the shares.

The S&P/TSX fell 11.97 points, or 0.1 percent, to 14,534.06 at 4 p.m. in Toronto. Volume was 10 percent below the 30-day average, data compiled by Bloomberg show. The Canadian equity benchmark lost 1.6 percent this week, the most since June.

“Because the volumes are down and many investors are still unsure of themselves, you’re finding greater moves in the marketplace, much more volatility,” said Irwin Michael, fund manager at ABC Funds in Toronto. His firm manages about C$900 million ($825 million).

Employment fell by 28,900 in April, Statistics Canada said today in Ottawa. The unemployment rate remained at 6.9 percent as 25,600 people also left the labor force, reducing the participation rate to the lowest since November 2001. Economists surveyed by Bloomberg News projected a 13,500 job increase and a jobless rate unchanged at 6.9 percent, according to median forecasts.

IGM Financial Inc. decreased 0.5 percent to C$54.16 after reporting first-quarter earnings that missed analyst estimates. The company’s revenue exceeded estimates.

Nautilus Minerals Inc., which plans to mine the ocean floor, rose 13 percent to 53 Canadian cents after Papua New Guinea paid for its share of the company’s main project. Earlier in the day Nautilus rose by as much as 32 percent.

K-Bro Linen Inc. slipped 3.1 percent to C$39. The company reported first-quarter profit that missed some analyst estimates.

To contact the reporter on this story: Gerrit De Vynck in Toronto at

To contact the editors responsible for this story: Lynn Thomasson at Jeff Sutherland

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