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Canada Stocks Fall Most in a Week Since June as Jobs Data Misses

Aug. 9 (Bloomberg) -- Canadian stocks fell, capping the biggest weekly loss since June, as employment unexpectedly decreased in July and profits trailed analysts’ estimates.

Dorel Industries Inc. slid 10 percent after reporting earnings that fell short of projections. Black Diamond Group Ltd. lost 6.4 percent as the company posted lower-than-estimated profit. BlackBerry Ltd. rose 5.7 percent after Reuters reported that the smartphone maker was considering going private. Magna International Inc. climbed 2.7 percent after increasing its annual sales forecast.

The Standard & Poor’s/TSX Composite Index fell 10.79 points, or 0.1 percent, to 12,542.13 at 4 p.m. in Toronto. The index has retreated 0.5 percent this week, the most since June 21. Trading volume was in line with the 30-day average.

“It’s a disappointing report,” said Michael O’Brien, fund manager with TD Asset Management Inc. in Toronto. The firm manages C$216 billion ($210 billion). “Yesterday we had an enormous move in the materials space, so today is a bit of consolidation. It’s encouraging that we’re not giving it all back.”

Raw-material producers in the S&P/TSX jumped 5.9 percent yesterday, the most since 2011, amid a rally in commodities.

Employment fell by 39,400 last month, while the jobless rate rose to 7.2 percent from 7.1 percent, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg News projected a 10,000 job gain and an unchanged jobless rate, according to the median forecasts in surveys with 23 responses.

Black Diamond

Black Diamond Group slumped 6.4 percent to C$23.52, pacing losses among industrials shares. The group fell 1 percent, the most in the S&P/TSX, as six of 10 industries retreated.

Black Diamond, which rents temporary living spaces for workers in remote areas, reported second-quarter adjusted earnings of 21 Canadian cents a share, short of analysts’ estimates for 30 cents according to a Bloomberg survey.

The company said declines in its energy services business contributed to the weaker results during the quarter.

Dorel Industries, which makes kids’ bicycles, car seats and strollers, sank 10 percent to C$33, the most in almost five years.

The Montreal-based company reported second-quarter adjusted earnings of 45 cents, missing analysts’ projections for 82 cents a share. The company said a late spring in the U.S., Canada and Europe hurt profits. Dorel said it took a $2 million charge due to severance after cutting about 50 jobs, or 5 percent of the workforce.

BlackBerry Status

Pacific Rubiales Energy Corp. slumped 6.4 percent to C$20.15, the most since April 3. The crude producer reported a 74 percent decline in second-quarter profit due to losses associated with Colombian peso depreciation and lower oil prices.

BlackBerry rose 5.7 percent to C$10.05. Chief Executive Officer Thorsten Heins and the company board are considering the idea that going private would give them the leeway to fix problems out of the public view, Reuters reported, citing unidentified sources.

An Aug. 7 report from International Data Corp. said BlackBerry’s global market share of the smartphone market in the second quarter had dropped to 2.9 percent from 4.9 percent a year ago. Google Inc.’s Android operating system owned 79 percent of market share.

Magna rose 2.7 percent to C$82.30 after the company’s sales and earnings beat analysts’ estimates and it raised its 2013 sales forecast.

Teck Resources Ltd. rose 3.9 percent to C$27.33 and First Quantum Minerals Ltd. advanced 4.8 percent to C$17.94. Copper advanced to a two-month high in New York after China’s industrial output rose 9.7 percent in July.

Teck has jumped 12 percent and First Quantum has climbed 14 percent in the past two days. Copper increased 4.2 percent this week.

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

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

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