- Scotia retreats after reporting C$275 million restructuring
- Oil futures slip as Iraq's April exports approach record
Canadian stocks fell in the first trading session of May, after capping a third monthly gain, as commodities producers declined with oil and Bank of Nova Scotia slipped after reporting a C$275 million restructuring charge.
The benchmark S&P/TSX Composite Index sank 0.6 percent to 13,865.63 at 4 p.m. in Toronto. The gauge increased 3.4 percent in April, matching the longest monthly winning streak since August 2014. The S&P/TSX is one of the best-performing developed markets in the world this year, up 6.6 percent as it rebounds from last year’s worst annual decline since 2008.
Suncor Energy Inc. and Cenovus Energy Inc. fell at least 3.1 percent to lead energy producers lower as the group declined 2 percent. Four of 10 industries in the S&P/TSX retreated on trading volume in line with the 30-day average. Raw-materials, financial services and health-care companies also decreased, while consumer staples and utilities rose more than 0.8 percent.
Goldcorp Inc. dropped 3.2 percent as raw-materials producers tumbled 1.6 percent. Gold was little changed in New York while copper prices sagged for the first time in three sessions as growth in U.S. manufacturing cooled in April. A gauge of S&P/TSX gold producers slumped 1.9 percent to snap a four-day rally of 15 percent.
Crude futures settled below $45 a barrel in New York, extending a slide from Friday. Exports from Iraq approached a record in April, shipping 3.36 million barrels a day in the month to add to a worldwide supply glut, according to an oil ministry spokesman. The figures don’t include sales by the Kurdistan Regional Government.
The resource-dominant S&P/TSX remains closely linked to moves in commodities prices, with a 17 percent rally in the benchmark equity gauge from a Jan. 20 low aligning with a rebound in crude from the lowest levels since 2003. Raw-materials and energy producers are the two top-performing industries in Canada so far this year, up more than 11 percent.
The Canadian benchmark now trades at 21.5 times earnings, about 11 percent higher than the 19.3 times earnings valuation of the Standard & Poor’s 500 Index, according to data compiled by Bloomberg.
Scotiabank lost 1 percent after reporting it will take a charge of 22 cents a share in its fiscal second quarter, to cover the cost of job cuts and other productivity enhancements as it shifts toward digital banking. The lender is scheduled to report results May 31.
Manitoba Telecom Services Inc. climbed a record 15 percent to the highest since 2008, after agreeing to sell itself to BCE Inc. in a C$3.1 billion cash and stock deal. Manitoba Telecom traded at a lower value than the C$40 a share acquisition price. As a follow-on to the deal, BCE will also transfer one-third of Manitoba Telecom’s wireless subscribers to competitor Telus Corp. BCE fell 0.3 percent while Telus gained 0.2 percent.
Valeant Pharmaceuticals International Inc. lost 2.3 percent, paring earlier declines of as much as 13 percent, for a third drop in the last four sessions. Warren Buffett criticized Valeant at Berkshire Hathaway Inc.’s annual meeting, calling the drugmaker’s business model “enormously flawed.”