Canadian stocks fell, retreating from a record, as declines in gold producers and Tim Hortons Inc. overshadowed gains at National Bank of Canada after it reported better-than-estimated third-quarter profit.
Tim Hortons lost 2.6 percent to snap a three-day rally. Talisman Energy Inc. fell 5.1 percent after a Wall Street Journal report said talks to sell some of its assets to Repsol SA have stalled. National Bank of Canada jumped to a record after reporting rising profit on gains in its capital markets and wealth-management businesses.
The Standard & Poor’s/TSX Composite Index lost 16.56 points, or 0.1 percent, to 15,602.65 at 4 p.m. in Toronto. The benchmark equity gauge closed at a record 15,619.21 yesterday.
Trading in S&P/TSX stocks was 3.9 percent higher than the 30-day average. Canadian stocks have surged 15 percent this year, making the S&P/TSX the second-best performer among developed equity markets behind Denmark.
Yamana Gold Inc. dropped 1.5 percent to C$9.02 and Eldorado Gold Corp. lost 1.3 percent to C$8.85 as raw-materials producers retreated 1 percent as a group. Six of 10 industries in the S&P/TSX fell.
Gold for December delivery slipped 0.1 percent to settle at $1,283.40 an ounce in New York, after rallying the most in three weeks yesterday.
National Bank of Canada jumped 3.1 percent to C$50.91, the biggest gain in three years, after the nation’s sixth-largest lender by assets bolstered its wealth-management business in the third quarter through takeovers including Winnipeg-based Wellington West Holdings Inc.
Bank of Montreal, which reported rising profit yesterday, advanced 1.2 percent to C$83.14, a record. The stock is up 17 percent this year, the best performer among the nation’s largest banks.
Tim Hortons lost 2.6 percent to C$86.42, retreating from a record. Some investors are either considering or already have sold their stakes in the coffee-and-doughnut chain after the stock’s 33 percent rally in the past three days on talks for a tie-up with Burger King.
“The easy money’s been made on this stock,” said Brian Huen, managing director at Red Sky Capital Management Ltd. in Toronto. His firm sold its Tim Hortons shares yesterday.