Canadian Stocks Slide After IMF Cuts Economic Outlook
Research In Motion Ltd. (RIM) lost 5.5 percent after Jefferies & Co. said the release of the company’s BlackBerry 10 phone may be delayed. Taseko Mines (TKO) Ltd. slid 5.5 percent as analysts at Canaccord Genuity lowered the stock’s rating to hold.
The Standard & Poor’s/TSX Composite Index (SPTSX) slumped 145.42 points, or 1.2 percent, to 12,273.57 in Toronto, its biggest loss since July 6. The benchmark equity gauge is up 2.7 percent this year. Raw-materials stocks contributed most to declines on the S&P/TSX as all 10 industries retreated.
“The weight of all these macro issues are bearing down on people, be it whether Spain will ask for money, will Germany do anything and then this report reducing global GDP, it’s all weighing on the market,” said Robert Sneddon, president of Oakville, Ontario-based CastleMoore Inc., in a phone interview. “And we’re seeing in the Canadian market some talk of housing pressure starting to build.”
Canadian housing starts fell 2.3 percent to an annual pace of 220,215 from a revised 225,328 in August, Ottawa-based Canada Mortgage & Housing Corp. said today. Economists surveyed by Bloomberg had forecast a median pace of 205,000 starts.
The world economy will grow 3.3 percent this year, the slowest since the 2009 recession, and 3.6 percent next year, the IMF said today, compared with July predictions of 3.5 percent in 2012 and 3.9 percent in 2013.
Taseko Mines slumped 5.5 percent to C$3.12 after Orest Wowkodaw, an analyst with Canaccord Genuity, cut the company’s rating to hold from buy, citing recent price gains. The copper and molybdenum mining company has risen 12 percent this year, compared with a 2.3 percent loss for the S&P/TSX Materials Index.
Endeavour Silver Corp. (EDR) fell 6.2 percent to C$8.97 after the company said an illegal work stoppage at its El Cubo mine in Guanajuato, Mexico, is preventing management and personnel from reaching parts of the site. Fortuna Silver Mines Inc. (FVI), which also mines in Mexico, declined 7.6 percent to C$4.60.
RIM fell 5.5 percent to C$7.62 in Toronto after Peter Misek, an analyst with Jefferies, said the company probably won’t release BlackBerry 10 smart phones until March, missing the fiscal fourth quarter. The delay would push back the timing of any licensing deals with other companies until after the release, Misek said in a research note today.
Alacer Gold Corp. (ASR) fell 4.2 percent to C$6.68 and Novagold Resources Inc. decreased 4.9 percent to C$4.87. Gold futures for December delivery dropped 0.6 percent to settle at $1,765 an ounce in New York, its lowest in more than a week.
Crew Energy Inc. (CR) jumped 5 percent to C$7.93, its highest price in six months, after Michael Harvey, an analyst at RBC Capital Markets, raised the stock to an outperform from sector perform rating and increased the price target to C$10 from C$7.50 on the view its Montney natural gas asset base is undervalued.
Trilogy Energy Corp. (TET) rose 1.7 percent to C$27.68, as crude for November delivery increased 3.4 percent to settle at $92.39 a barrel in New York.
To contact the reporter on this story: Eric Lam in Toronto at email@example.com
To contact the editor responsible for this story: Lynn Thomasson at firstname.lastname@example.org