Canadian stocks fell for the first time in seven days, led by gold producers, after the price of the metal slumped following data that showed U.S. payrolls rose more than forecast.
Goldcorp Inc., Yamana Gold Inc. and Kinross Gold Corp. paced declines in the Canadian equity benchmark as the metal fell the most since June. Barrick Gold Corp. dropped 3.6 percent after analysts at BMO Capital Markets cut the stock’s rating to market perform a day after it reported disappointing third-quarter earnings. Inmet Mining Corp. jumped 6.8 percent as the diversified miner reported better-than-expected third-quarter revenue.
The Standard & Poor’s/TSX Composite Index fell 119.35 points, or 1 percent, to 12,380.41 in Toronto. The benchmark Canadian equity gauge is up 3.6 percent this year.
“If the U.S. economy is relatively strong then gold will come off,” said Bill Harris, fund manager with Avenue Investment Management, in an interview from Toronto. He manages about C$279 million.
Gold for December delivery slumped 2.3 percent to settle at $1,675.20 in New York, the biggest loss in more than four months. In the last U.S. jobs report before next week’s election, a net 171,000 workers were added to payrolls after a 148,000 gain in September that was more than first estimated, Labor Department figures showed.
Canada’s unemployment rate remained at 7.4 percent in October as job growth slowed. Employment rose by 1,800 following September’s 52,100 gain, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg News projected job creation of 10,000 and 7.4 percent unemployment, according to median of 23 forecasts.
Raw-materials companies paced losses on the Toronto Stock Exchange as the S&P/TSX Materials Index lost 3 percent. Trading volumes were 8.5 percent higher than the 30-day average.
Barrick slid 3.6 percent to C$35.24. David Haughton, co-head of metals and mining research with BMO Capital Markets, cut his rating on the company to market perform. The stock lost 9.9 percent this week, the most since 2009 after yesterday posting earnings that fell short of analysts’ estimates.
“The company has struggled to meet guidance recently,” Haughton said in a note to clients today.
Goldcorp lost 4.9 percent to C$42.97. The Vancouver-based company briefly overtook Barrick as the world’s largest gold miner by market capitalization in earlier trading before retreating.
Agnico-Eagle Mines Ltd. sank 6.3 percent to C$52.66 and New Gold Inc. tumbled 8.7 percent to C$10.75. Six of the 10 biggest declines in the S&P/TSX by index points were gold companies.
Athabasca Oil Corp. retreated 7.4 percent to C$11.28 and Penn West Petroleum Ltd. slumped 7.1 percent to C$12.11. Crude oil for December delivery dropped 2.6 percent to settle at $84.86 in New York, the lowest level since July 10 on speculation the shutdown of refineries on the U.S. East Coast because of Hurricane Sandy will boost supply levels.
Inmet climbed 6.8 percent to C$56.17 after the gold, zinc and copper mining company posted revenue of $327.2 million in the third quarter, compared with an average analyst estimate of $252.8 million, according to data compiled by Bloomberg.
SNC-Lavalin Group Inc., Canada’s largest engineering and construction company, rose 4.7 percent to C$42.17 after reporting third-quarter profit that fell less than analysts anticipated as revenue climbed.