Aug. 14 (Bloomberg) -- Canadian stocks fell for the first time in three days, retreating from a two-week high, as retailers including Rona Inc. retreated on weaker-than-estimated results.
Rona dropped 3.7 percent as earnings fell short of projections. Metro Inc. fell the most since May 2010 after announcing it will take a C$40 million ($39 million) charge to reorganize its Ontario store network and that sales fell short of estimates. First Majestic Silver Corp. and Silvercorp Metals Inc. rallied at least 7.6 percent to lead raw-materials producers higher as the metal advanced for a fifth day.
Three stocks fell for every two that rose as the Standard & Poor’s/TSX Composite Index slipped 2.89 points, or less than 0.1 percent, to 12,639.30 at 4 p.m. in Toronto. The index swung as high as 0.2 percent and as low as 0.2 percent.
“The Canadian economy is growing marginally slower than the U.S., so companies missing estimates is to be expected,” said Anish Chopra, a fund manager with TD Asset Management Inc. in Toronto. The firm manages C$216 billion. “When you look at precious metals, for both gold and silver the pricing has come down significantly so there are people who think there’s value at these levels.”
Economists estimate Canadian gross domestic grew 1.6 percent in the second quarter, according to a Bloomberg survey. The U.S economy expanded by 1.7 percent in that period.
Eight of 10 main industries in the gauge fell, with consumer staples stocks dropping 1.4 percent. Materials producers added 2.3 percent as a group.
Metro declined 3.7 percent to C$69.30, the lowest since July 5. Canada’s third largest grocery chain reported a 0.9 percent drop in same-store sales last quarter, the worst result in at least 10 years, data compiled by Bloomberg show. The figure measures performance at locations open for at least a year. Metro reported sales of C$3.57 billion in the period, compared with analysts’ estimates for C$3.64 billion.
Rona dropped 3.7 percent to C$10.84. The country’s largest home-improvement store chain posted second-quarter adjusted earnings of 28 Canadian cents, short of the 33 cents estimated by analysts.
Same-store sales fell 1 percent in the quarter, affected by poor weather, a June strike in the Quebec construction industry and falling housing starts across the country, Rona said in a statement.
Silvercorp Metals soared 7.6 percent to C$3.84, highest in four months, and First Majestic jumped 9.3 percent to C$14.85. Silver rallied for a fifth straight day, advancing 12 percent in that time. The metal remains 28 percent lower in 2013.
Kinross Gold Corp. added 6.5 percent to C$5.94 and Iamgold Corp. rose 6.9 percent to C$6.01 as the price of gold increased for the fifth time in six sessions. The metal had fallen 21 percent this year through yesterday.
Teck Resources Ltd. gained 2.7 percent to C$28.42, the highest since May, as copper traded near a nine-week high.
Bankers Petroleum Ltd. climbed 3 percent to C$3.14. Oil revenue surged 34 percent to $131.8 million as production rose to 17,866 barrels a day in the second quarter, compared with 14,161 barrels a year ago.
Bankers said it will ramp up spending on surface facilities in the second half of the year, including the potential acquisition of a sixth drilling rig that should allow the company to reach the “high-end of our annual guidance,” Chief Executive Officer David French said in a statement.
To contact the reporter on this story: Eric Lam in Toronto at firstname.lastname@example.org
To contact the editor responsible for this story: Lynn Thomasson at email@example.com