Canada Stocks Halt Two-Day Slide as Hudson’s Bay Leads Retailers

Updated on

Canadian stocks were little-changed after two days of losses, as a retail rally overshadowed a global equities selloff amid concern that Greece won’t reach a deal with creditors to avert a default.

Hudson’s Bay Co. soared 7.9 percent after agreeing to buy German retailer Galeria Kaufhof from Metro AG. Bombardier Inc. climbed 3.2 percent after its long-delayed CSeries jet took to the sky at the Paris Air Show for the first time. RMP Energy Inc. and Surge Energy Inc. retreated more than 4.3 percent as oil declined a third day, leading energy shares lower.

The Standard & Poor’s/TSX Composite Index rose 14.90 points, or 0.1 percent, to 14,756.05 at 4 p.m. in Toronto. The gauge declined 1.4 percent last week for a third straight decline.

Six of 10 industries in the S&P/TSX advanced on trading volume 11 percent below the 30-day average. Producers of consumer staples rallied 1.2 percent to lead gains. Financial stocks, which account for about one-third of the index, added 0.3 percent.

Hudson’s Bay, Canada’s oldest company, surged the most since February. The company will pay 2.83 billion euros ($3.2 billion) for Kaufhof, putting one of Germany’s longest-standing and best-known retailers under the same ownership as Saks Fifth Avenue.

Suncor Energy Inc. lost 1.7 percent and Canadian Natural Resources Ltd. declined 1.3 percent as energy producers decreased 0.4 percent as a group.

Developed equity markets tumbled around the world, with the S&P 500 losing 0.5 percent in New York and the Stoxx Europe 600 falling 1.6 percent after Greece failed to reach an agreement with creditors in talks on the weekend.

Attention now shifts to a June 18 meeting of euro-area finance ministers in Luxembourg as the next deadline in a saga that opened in 2009. Officials have focused on that as a make-or-break session for Greece’s ability to avert default and stay in the currency union.

Canadian factory sales slumped 2.1 percent in April, quadrupling forecasts on lower receipts of food, aerospace and energy. It is the third monthly drop this year for the measure, as manufacturers have struggled to recapture orders lost in the 2008-2009 recession.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE