Nov. 11 (Bloomberg) -- Canadian stocks fell, after the benchmark index posted its fourth weekly gain in five, as a slump in gold producers offset rallies in Aastra Technologies Ltd. and CCL Industries Inc.
Detour Gold Corp. tumbled 7.1 percent after Canaccord Genuity Corp. cut its recommendation. Silver Wheaton Corp., the world’s largest buyer of precious-metal output rights from copper, zinc and lead mines, slipped 0.7 percent after it missed analysts’ quarterly sales forecast and cut its dividend. Aastra Technologies rallied 14 percent after agreeing to be acquired by Mitel Networks Corp. CCL Industries Inc. jumped 9.1 percent to a record after sales beat estimates.
The Standard & Poor’s/TSX Composite Index lost 19.94 points, or 0.2 percent, to 13,358.39 at 4 p.m. in Toronto, after rising as much as 0.1 percent earlier. Trading in the benchmark gauge’s stocks was 6.7 percent below the 30-day average.
“Ultimately we’re going to need to see revenue growth accelerate to keep this rally going,” said Jeff Young, chief investment officer of NexGen Financial Corp. in Toronto, who oversees about C$900 million ($859 million), said in a phone interview. “It remains to be seen when that will happen.”
Gold slipped to a three-week low in New York on speculation that signs of a strengthening U.S. economy will encourage the Federal Reserve to curb stimulus measures, eroding the appeal of the metal as a store of value. Futures for December delivery lost 0.3 percent to $1,281.10 an ounce.
Seven of 10 main industries in the S&P/TSX declined. BCE Inc. lost 0.9 percent to C$45.94 and Rogers Communications Inc. slipped 0.8 percent to C$46.71 to pace declines as telephone stocks retreated 0.7 percent as a group.
Atlantic Power Corp. dropped 2.2 percent to C$3.96, extending a record low, and has plunged 13 percent in two days since reporting worse-than-projected third-quarter earnings on Nov. 7.
Silver Wheaton declined 0.7 percent to C$22.46. Sales totaled $166.4 million in the third quarter, trailing the average analyst estimate of $185.6 million. The company reduced its dividend to 9 cents a share from 10 cents in the previous quarter.
Detour Gold plunged 7.1 percent to C$5.90, the lowest since December 2008. The stock has lost 28 percent in the past three trading sessions.
The producer of the precious metal was cut to hold from speculative buy by Rahul Paul, an analyst with Canaccord Genuity. The stock plunged 18 percent on Nov. 8 after saying it will not meet 2013 production targets.
Aastra surged 14 percent to C$32.29. The maker of telecommunications equipment agreed to be bought by Mitel for $6.52 in cash plus 3.6 Mitel shares for each Aastra share. Using the closing Mitel share price on Nov. 8, 2013, and a Canadian dollar to U.S. dollar exchange rate of 0.9531, this amounts to C$31.96 per Aastra common share.
CCL Industries jumped 9.1 percent to a record C$78.68. The maker of specialty packaging posted revenue of C$606.6 million in the third quarter, exceeding the average estimate of C$549.5 million from two analysts in a Bloomberg survey.
IGM Financial Inc. climbed 5.5 percent to C$54.22 for the highest close since October 2007. BMO Capital Markets analyst John Reucassel raised his rating for the stock to outperform, the equivalent of a buy, on Nov. 8. IGM has five buys and seven holds, according to data compiled by Bloomberg.
Equities rose last week as jobs data from the U.S. and Canada beat economists’ forecasts, bolstering optimism the region’s growth is accelerating. The S&P/TSX climbed 0.3 percent for the week, extending its 2013 advance to 7.6 percent.
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