Canada Stocks Drop After Three-Day Rally Amid China Data
Canadian stocks ended a three-day rally as raw-material companies dropped after China’s industrial production trailed analyst estimates.
Badger Daylighting Ltd., an excavation company, fell 24 percent after it reported lower profit margins on slower activity in North America and wet weather in Saskatchewan. Black Diamond Group Ltd. slid 3.7 percent after its earnings fell short of analyst estimates. Secure Energy Services Inc. rose 13 percent on better-than-forecast profit.
The Standard & Poor’s/TSX Composite Index (SPTSX) dropped 11.50 points, or 0.1 percent, to 15,262.73 at 4 p.m. in Toronto. The equity gauge is up 12 percent this year, and had advanced 1 percent over the previous three days.
Teck Resources Ltd., Canada’s largest diversified mine operator, slid 0.3 percent. Copper fell 1.3 percent amid concern about the outlook for demand in China, the biggest consumer of the metal. Zinc and aluminum slid in London.
China’s industrial output expanded 9 percent in July, less than the 9.2 percent estimate from economists in a Bloomberg survey, government statistics showed today. The country’s broadest measure of credit slumped to the lowest since the global financial crisis.
Badger Daylighting plunged 24 percent to C$27.25. Adjusted Ebitda margins were 25 percent for the second quarter, compared with 29 percent a year ago, the company said.
Black Diamond fell 3.7 percent to C$28.67. The provider of temporary work space reported earnings excluding some items of 23 cents a share, compared with the 31-cent average analyst estimate, data compiled by Bloomberg show. Yesterday, the stock was reduced to market perform, the equivalent of hold, from outperform at BMO Capital Markets.
Secure Energy Services gained 13 percent to C$27.18. The company, which sells services to the oil and gas industry, had earnings of 5 cents a share, compared with the average analyst estimate of 4 cents. It also agreed to buy Predator Midstream Ltd., according to a statement from the company yesterday.
To contact the editors responsible for this story: Lynn Thomasson at email@example.com Jeff Sutherland