April 26 (Bloomberg) -- Canadian stocks fell for the first time in seven days, paring a weekly gain, after data showed the U.S. economy grew at a slower pace than forecast.
TransCanada Corp. dropped 1.3 percent after the pipeline builder said delays in getting a U.S. presidential permit for the Keystone XL oil conduit will push back its start until the second half of 2015. Suncor Energy Inc., Canada’s largest energy producer, lost 1.1 percent as crude retreated for the first time in seven days.
The Standard & Poor’s/TSX Composite Index fell 109.31 points, or 0.9 percent, to 12,220.20 at 4 p.m. in Toronto. The benchmark equity gauge gained 1.3 percent this week, trimming its loss for the year to 1.7 percent.
“The U.S. numbers are definitely weaker than expected,” Andrew Pyle, a fund manager with ScotiaMcLeod Inc., said on the phone from Peterborough, Ontario. He manages C$210 million ($206 million). “That number has had an impact on oil. It was not a disastrous number, but when people are looking for a 3 percent handle on GDP, 2.5 percent takes some of the wind out of oil.”
U.S. gross domestic product rose at a 2.5 percent annual rate, lower than forecast, after a 0.4 percent fourth-quarter advance, Commerce Department figures showed today in Washington. The median estimate of 86 economists surveyed by Bloomberg called for a 3 percent gain. Consumer spending, the biggest part of the economy, climbed by the most since the fourth quarter of 2010.
Raw-materials and energy stocks contributed most to losses in the S&P/TSX as eight of 10 industries retreated. Trading volume was 13 percent lower than the 30-day average at this time of the day.
TransCanada, Canada’s second-largest pipeline company, decreased 1.3 percent to C$49.14. The company said its $5.3 billion cost estimate for the Keystone project will increase depending on the timeline of the permit.
TransCanada has spent $1.8 billion on the project as of the end of last month, which was originally targeted for a startup in late 2014 or early 2015.
The Calgary-based company also reported first-quarter earnings of 52 Canadian cents a share, short of the average estimate of 54 cents according to a Bloomberg survey of 13 analysts.
Suncor lost 1.1 percent to C$29.28 and Canadian Natural Resources Ltd. dropped 2.1 percent to C$29.58. Crude for June delivery declined 0.7 percent to settle at $93 a barrel in New York to trim the biggest weekly advance since June. Prices rose 5.7 percent this week.
Lundin Mining Corp. dropped 5.8 percent to C$3.93 and First Quantum Minerals Ltd. fell 7.4 percent to C$16.67 as copper fell for the first time in three days. Stockpiles of the metal are expanding ahead of a holiday that will close markets in China, the world’s biggest consumer.
Royal Bank of Canada, the nation’s largest lender, lost 0.8 percent to C$60.02 and Toronto-Dominion Bank decreased 0.3 percent to C$81.10 as financial stocks fell for the first time in four days.
Gabriel Resources Ltd. surged 29 percent to C$1.72, the biggest gain since October 2008. Mediafax, a Romanian media company, said the government plans to create a company called Minvest Rosia Montana to take over the 19.3 percent stake held by the state in Gabriel’s mine project, according to an unpublished official document.
Gabriel’s Rosia Montana project has reported resources of 17.1 million ounces of gold and 81.1 million ounces of silver, according to the company’s website.
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