Canada Stocks Fall as Miners Drop on Declines in Copper and Gold
Canadian stocks fell, snapping a four-day rally, as raw-material shares paced declines amid losses in copper and gold while Hudson’s Bay Co. said its Lord & Taylor stores’ sales didn’t rebound as expected.
Hudson’s Bay retreated 5.1 percent after reporting that Lord & Taylor’s same-store sales declined 1.3 percent in the latest quarter. UrtheCast Corp. added 4.9 percent after the space imaging company released its first picture from a new camera on the International Space Station.
The Standard & Poor’s/TSX Composite Index lost 56.90 points, or 0.4 percent, to 14,402.21 at 4 p.m. in Toronto. The drop ended a four-day rally that moved the index up 2 percent, including a 0.6 percent advance yesterday.
“We had a very strong day yesterday in the markets, particularly in Canada where you saw the resource sector rally,” said Brian Huen, managing partner at Red Sky Capital Management Ltd. in Toronto. He helps manage about C$225 million ($204 million). “People are not seeing the follow-through from yesterday so they’re taking some money off the table.”
Materials companies fell 0.9 percent as eight of 10 industries in the benchmark index retreated. Phone companies lost 1.3 percent as a group after CIBC World Markets cut its rating on the Canadian cable and telecommunications industry to the equivalent of a sell from the equivalent of a hold, saying government hearings may bring new regulation to the industry.
Richmont Mines Inc. tumbled 6.8 percent to C$1.51 after the gold miner said it would issue 7 million new shares for C$1.45 each, a 10 percent discount to yesterday’s closing price of C$1.62.
Hudson’s Bay declined 5.1 percent, the most since Dec. 11, to C$17.86 after reporting its fourth-quarter results and saying the Lord & Taylor stores didn’t rebound as the company expected. The retailer also forecast lower earnings than analyst had predicted.
UrtheCast rose 4.9 percent to C$2.15 after posting its first image from a camera mounted on the International Space Station to its website. The company also said that it was not affected by the National Aeronautics and Space Administration’s decision to cut ties with the Russian space agency.
Rogers Communications Inc., Canada’s largest wireless company, fell 0.9 percent to C$45 after the industry downgrade from CIBC. Telus Corp. fell 2.7 percent to C$38.10 while Shaw Communications Inc. fell 2.9 percent to C$25.94. Phone companies have gained 12 percent as a group since the beginning of August 2013.
Goldcorp Inc. fell 1.7 percent to C$27.14 after the company said it was pushing back the expiry date of its hostile offer to buy Osisko Mining Corp. to April 15. Yesterday, Yamana Gold Inc. offered to buy half of Osisko for C$1.47 billion, out-pricing Goldcorp’s bid.
West Fraser Timber Co. rose 1.3 percent to C$52.04 as Statistics Canada said the country’s trade balance swung to a surplus in February. Three-quarters of Canada’s 2013 exports went to the U.S.
To contact the reporter on this story: Gerrit De Vynck in Toronto at email@example.com