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Canadian Stocks Fall as Financial Shares Decline; Iamgold Drops

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April 15 (Bloomberg) -- Canadian stocks completed their first weekly decline in five weeks as banks fell after Moody’s Investors Service cut Ireland’s credit rating by two levels and Bank of America Corp. missed analysts’ profit forecasts.

Toronto-Dominion Bank, Canada’s second-largest lender by assets, dropped 0.9 percent. Canadian Natural Resources Ltd., the country’s second-biggest energy company by market value, climbed 2.5 percent as crude oil rallied. Iamgold Corp., which produces gold in Africa and South America, lost 8.7 percent after agreeing to sell its stake in two Ghanaian mines.

The Standard & Poor’s/TSX Composite Index slipped 22.68 points, or 0.2 percent, to 13,799.12, the lowest level since March 18. The equity benchmark declined 2.9 percent this week.

“We got some disappointing earnings out of the U.S.,” said Youssef Zohny, who helps oversee C$50 million ($52 million) as a money manager at Van Arbor Asset Management Ltd. in Vancouver. “It looks like expectations were a bit too high going into earnings season. That took a little bit of air out of the rally that we’ve had.”

The S&P/TSX retreated this week after the International Monetary Fund cut its growth forecast for the U.S. and concern mounted that China will further tighten credit to restrain inflation. The 11 S&P 500 companies that reported financial results this week reported a combined $10.7 billion in quarterly profit, missing analyst estimates by 3.5 percent.

Bank of America, the largest U.S. lender by assets, reported earnings that trailed the average of 28 analyst estimates in a Bloomberg survey by 35 percent, excluding certain items.

Record Yields

Bond yields on Greek and Portuguese debt climbed to records after Moody’s reduced its rating on Irish debt to Baa3 from Baa1. A restructuring of Greek debt “would not be a disaster,” Werner Hoyer, Germany’s deputy foreign minister, said in an interview.

TD fell 0.9 percent to C$82.09. Canadian Imperial Bank of Commerce, Canada’s fifth-biggest lender by assets, dropped 1.4 percent to C$82.50. Manulife Financial Corp., North America’s fourth-biggest insurer, declined 1.6 percent to C$16.45.

Energy companies rose after the U.S. Federal Reserve’s gauge of industrial production and the Federal Reserve Bank of New York’s index of regional manufacturing exceeded most economist forecasts.

Canadian Natural climbed for the first time this week, increasing 2.5 percent to C$43.63. Canadian Oil Sands Ltd., the biggest owner of the Syncrude project, rallied 3.2 percent to C$32.55. Oil and gas producer Trilogy Energy Corp. surged 6.2 percent to C$21.50.

African Mine

Semafo Inc., a gold mining company that generated 69 percent of its revenue in Burkina Faso last year, slumped 12 percent to C$7.47 after the African country’s presidential guard mutinied. The plunge was the biggest in a day since June 2009.

Iamgold lost 8.7 percent, the most in 16 months, to C$19.27 after agreeing to sell its interests in the Tarkwa and Damang mines to Gold Fields Ltd. for $667 million. The company, based in Toronto, is selling minority stakes in assets to raise funds to buy majority interests.

Steven Butler, an analyst at Canaccord Financial Inc., cut his rating on the shares to “hold” from “buy.” In a note to clients, he cited the sale’s negative impact on the company’s net asset value and the possible impact of the unrest in Burkina Faso on Iamgold’s operations there.

To contact the reporter on this story; Matt Walcoff in Toronto at mwalcoff1@bloomberg.net.

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.

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