Canadian Stocks Fall on Concern Greece May Miss Targets
Canadian stocks fell for a third day as commodities slid on growing speculation that Greece may miss debt-reduction targets and require more restructuring.
Energy shares and banks contributed the most to the decline in the Standard & Poor’s/TSX Composite Index (SPTSX) among 10 industries, while telephone companies rose the most. Encana (ECA) Corp. and Canadian Natural Resources Ltd. (CNQ) fell at least 3.5 percent. Rogers Communications Inc. (RCI/B), the nation’s largest wireless carrier, gained 4.8 percent after reporting second- quarter earnings that beat analysts’ estimates.
The S&P/TSX declined 78.59 points, or 0.7 percent, to 11,466.95. The benchmark index advanced as much as 0.3 percent earlier.
A report from Reuters citing European Union officials said Greece was seen missing targets for reducing debt. On July 22, German Vice Chancellor Philipp Roesler said it was unlikely Greece could meet its obligations under a euro-area bailout program and that he was “very skeptical” European leaders would be able to rescue the country.
Greece’s international creditors returned to Athens today to assess how far from bailout terms the country has strayed as Prime Minister Antonis Samaras pieces together additional budget cuts that may determine the country’s membership in the euro area.
Energy provider Encana lost 3.5 percent to C$20.77. Canadian Natural Resources declined 3.9 percent to C$27.67. Suncor Energy Inc. (SU), the nation’s largest oil company, fell 1.8 percent to C$29.76. The S&P’s GSCI Spot Index of 24 raw materials declined for the third day on concerns that the European debt crisis would cut commodity demand.
Rogers rose 4.8 percent to C$39.01 as job cuts lifted profitability at the company’s main mobile phone unit. Profit excluding some items rose 6 cents to 91 Canadian cents a share, beating the average estimate of 86 cents from 16 analysts compiled by Bloomberg.
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