Canada Stocks Fall, Extending Weekly Retreat After Jobs Report

Canadian stocks fell a second day, capping the first weekly decline in a month, after a report showed the nation unexpectedly lost jobs led by a record loss in private-sector employment.

Royal Bank of Canada (RY) and Bank of Montreal slipped more than 0.4 percent to pace declines among financial stocks. Talisman Energy Inc. dropped 1.2 percent as crude prices posted a weekly drop on weaker-than-estimated U.S. jobs growth.

The Standard & Poor’s/TSX Composite Index (SPTSX) fell 6.87 points, or less than 0.1 percent, to 15,569.92 at 4 p.m. in Toronto. The gauge erased an earlier decline of 0.3 percent before retreating in the final minutes of trading. It finished Sept. 3 at a record 15,657.63.

The Canadian equities benchmark fell 0.4 percent this week, snapping three weeks of gains. Trading volume in the S&P/TSX was in line with the 30-day average.

Canadian employment fell by 11,000 and the jobless rate was unchanged at 7.0 percent, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg News projected a 10,000 job increase and unchanged employment, according to median forecasts. The private sector lost a record 111,800 jobs, the data showed.

Bank Stocks

Bank of Montreal lost 0.6 percent to C$84.34 for a second day of losses, and Royal Bank slipped 0.4 percent to C$80.82, as the S&P/TSX Financials Index retreated 0.3 percent. Financial stocks account for 34 percent of the S&P/TSX.

American employers hired 142,000 workers in August, short of the median estimate of 230,000 and the jobless rate dropped to 6.1 percent as people left the workforce.

Alimentation Couche-Tard Inc. (ATD/B) dropped 0.1 percent to C$36.66, retreating from a record and halting a three-day rally. The convenience store operator had jumped 13 percent during that period after reporting better-than-expected earnings and raising its dividend.

Hudson’s Bay Co. (HBC) jumped 4.9 percent to C$17.83, the highest since May, after M Capital Partners Inc. analyst Steven Salz said in a report the retailer will likely monetize its real-estate holdings.

To contact the reporter on this story: Eric Lam in Toronto at elam87@bloomberg.net

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

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.