Canadian stocks fell for a third day, sending the benchmark index toward its first monthly slide in 11, as Canadian Imperial Bank of Commerce paced a slump among financial companies.
CIBC fell 1.4 percent after reporting a 65 percent slide in net income. Turquoise Hill Resources Ltd. dropped 2.7 percent, the most among materials producers, as prices of copper and gold fell. PrairieSky Royalty Ltd., the former Encana Corp. unit, rose 32 percent on its first day of trading. BlackBerry Inc. gained 5.6 percent after Chief Executive Officer John Chen said the odds of turning around the smartphone maker have improved.
The Standard & Poor’s/TSX Composite Index dropped 22.01 points, or 0.2 percent, to 14,588.95 at 4 p.m. in Toronto. The benchmark index is down 0.4 percent in May after rising in each of the past 10 months.
“You look at how well the market has run with no correction and we’re overdue,” said David Cockfield, a fund manager at Northland Wealth Management in Toronto. “I’m not about to rush out and chase stocks in this kind of environment.” He helps manage C$270 million ($250 million) at the firm.
Financial companies fell 0.5 percent as a group as CIBC retreated even as profit beat estimates and the firm raised its dividend. The lender took a C$420 million impairment charge for its Barbados-based bank and C$123 million of loan losses for the Caribbean in the quarter. The bank declined 1.4 percent to C$97.68.
Turquoise Hill decreased 2.7 percent to C$3.94 as gold reached a 16-week low. Copper dropped from an 11-week high.
PrairieSky gained 32 percent to C$37 from its initial public offering price of C$28. The IPO is the largest for Canada in 14 years. Encana rose 1.2 percent to C$25.25.
Maple Leaf Foods Inc. jumped 10 percent to C$19.13, the most since 2000, as Tyson Foods Inc. made an unsolicited $6.2 billion bid to buy Hillshire Brands Co. The offer surpasses an existing bid from Pilgrim’s Pride Corp.
“One of the two companies is going to have free capacity to buy something and so the speculation obviously is rampant around Maple Leaf,” said Sam La Bell, a Toronto-based analyst at Veritas Investment Research.
Macro Enterprises lost 22 percent to C$4.70 after saying it expects second-quarter revenue will be lower than it was last year.
BlackBerry increased 5.6 percent to C$8.36 after Chen said the chances of turning around the struggling smartphone maker have risen to 80-20. Chen, who was named as BlackBerry’s top executive in November, had previously been placing the recovery odds at 50-50.
“We have a lot of problems, but it’s not dead,” the CEO said yesterday at Re/code’s Code Conference in Rancho Palos Verdes, California. “I am quite positive that we will be able to save the patient.”