Canadian stocks fell, erasing a weekly gain, as Research In Motion Ltd. plunged after reporting earnings that missed the average estimate in a Bloomberg survey.
RIM, the BlackBerry maker, tumbled 20 percent in Toronto Stock Exchange trading. Cenovus Energy Inc., Canada’s fifth-largest energy company, fell 4.4 percent as crude oil declined. Goldcorp Inc., the world’s second-largest gold producer by market value, climbed 0.9 percent as the metal rebounded from a September low.
The Standard & Poor’s/TSX Composite Index slipped 161.13 points, or 1.3 percent, to 12,263.71, ending the week down 1 percent.
RIM’s “net income was down over 50 percent from last year,” Jennifer Radman, a money manager at Caldwell Investment Management Ltd. in Toronto, said in a telephone interview. The firm oversees about C$1 billion ($1 billion). “That’s pretty scary to people.”
The S&P/TSX gained earlier this week as France and Germany expressed support for Greece’s place in the euro region and the European Central Bank coordinated with international policy makers to lend dollars to banks. Canada’s stock benchmark is set to decline for a seventh straight month, the longest streak since 1984, as energy and financial stocks have retreated on concern the global economic recovery is in jeopardy.
RIM reported second-quarter earnings of 80 cents a share, trailing the average analyst estimate by 9.4 percent, excluding certain items. The Waterloo, Ontario-based company sold fewer than half as many PlayBook tablets as analysts had forecast on average.
The company’s shares tumbled 20 percent to C$23.50 on the Toronto Stock Exchange. In composite trading, RIM fell 2.1 percent to C$23.50 after sinking 19 percent when the company disclosed its results yesterday. The shares have plunged 60 percent this year.
Crude futures dropped 1.6 percent in New York while European finance ministers met in Wroclaw, Poland, to address the continent’s debt crisis.
Canadian Natural Resources Ltd., the country’s second-largest energy company by market value, declined 2.9 percent to C$34.20. Cenovus lost 4.4 percent to C$32.61. Talisman Energy Inc., an oil and gas producer with operations in North America, the North Sea and Indonesia, decreased 5 percent to C$14.30.
TD, Royal Bank
Canada’s six largest banks and all eight S&P/TSX insurance stocks fell. Toronto-Dominion Bank, the country’s second-largest lender by assets, dropped 2.1 percent to C$73.60. Royal Bank of Canada, its bigger domestic rival, declined 2.5 percent to C$46.30. Manulife Financial Corp., Canada’s largest insurer, lost 3.6 percent to C$12.45 after surging 6.3 percent yesterday.
The S&P/TSX Gold Index climbed for the first time in six days as the metal rose 1.9 percent. Goldcorp increased 0.9 percent to C$50.29. Barrick Gold Corp., its larger peer, gained 0.9 percent to C$52.52. OceanaGold Corp, which mines in New Zealand, soared 11 percent, the most since May 2010, to C$2.88.
Iamgold Corp. advanced 2.8 percent to C$21.59 after Sabrina Grandchamps, an analyst at HSBC Holdings Plc, raised her ratings on the shares to “overweight” from “neutral.” Higher gold prices will boost mining companies’ cash flow, HSBC said in a note to clients.
Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer by market value, slipped 3.2 percent to C$54.50. Investors should sell some of their shares of fertilizer producers now that farmers have bought most of what they need for the Northern Hemisphere autumn, Charles Neivert, an analyst at Dahlman Rose & Co., said in a note to clients.
Propane distributor Superior Plus Corp. climbed 5.9 percent from a record-low close to C$8.79. The shares had tumbled 12 percent since DBRS Ltd. cut its credit ratings on the company Sept. 12.