Canadian Stocks Retreat for Fifth Day, Erasing This Year’s Gain

Canadian stocks fell for a fifth day, erasing gains for the year, as Canadian Western Bank reported lower-than-estimated profit and signs of weakening growth in China and Germany spurred losses in commodity producers.

Canadian Western Bank lost 1.2 percent, reaching a three-week low. Teck Resources Ltd., Canada’s largest diversified mining company by market value, slipped 1.4 percent as copper posted the biggest loss in two weeks. Bombardier Inc. climbed 1.2 percent after winning a $771 million contract to supply vehicles for Stockholm’s metro rail network. Trican Well Service Ltd., Canada’s third-largest drilling-services provider by market value, jumped 5.2 percent after predicting a “strong” third quarter.

The Standard & Poor’s/TSX Composite Index fell 34.32 points, or 0.3 percent, to 12,409.33 at 4 p.m. in Toronto. The index has fallen 0.2 percent this year. Trading volume was 0.4 percent lower than the 30-day average.

“The trend is down for the market after the overnight news from Asia and Germany,” said Stephen Gauthier, chief investment officer with Fin-XO Securities Inc. in Montreal. His firm manages C$550 million ($532 million). “The economic picture there is not great.”

German factory orders slid more than forecast in April, figures showed today. Export growth in China, the biggest copper consumer, probably grew in May at half the pace of a month earlier, economists said in a Bloomberg survey before data due June 8.

Banks, REITs

Financial stocks posted the second-biggest decline among industries in the S&P/TSX, losing 0.6 percent as a group as eight of 10 industries retreated.

Canadian Western Bank lost 1.2 percent to C$28.20. The lender reported second quarter adjusted earnings of 55 Canadian cents a share, short of analysts’ forecasts for 57 cents a share.

Artis Real Estate Investment Trust fell 1.2 percent to C$15.53 and Boardwalk Real Estate Investment Trust rose 1.1 percent to C$61.35. The S&P/TSX Capped REIT Index rose 0.1 percent to snap a seven-day losing streak. The index had declined 6.4 percent in the previous seven days.

Raw-material producers retreated as RBC Capital Markets cut its 2013 forecast for copper prices by 9.3 percent. Copper for July delivery slumped 1.6 percent to settle at $3.319 a pound. Aluminum, zinc, lead, nickel and tin slid in London.

Rio Alto Mining Ltd., which is developing a copper and gold project in Peru, slumped 3.1 percent. Teck Resources dropped 1.4 percent to C$26.76 and First Quantum Minerals Ltd. slipped 0.9 percent to C$18.36.

Passenger Trains

Bombardier, the Montreal-based manufacturer of aircraft and rail transportation, advanced 1.2 percent to C$4.92. The company will deliver 96 Movia passenger trains to the Stockholm Public Transport Authority in Sweden, with an option for a further 80 vehicles.

Petrominerales Ltd. rose 3.1 percent to C$6.27. The company said it would give investors the option of receiving shares of the company at a 5 percent discount to the share price. Investors may also choose to continue receiving their payouts in cash, the company said.

Trican jumped 5.2 percent to C$15.96. The company said in a presentation to investors posted on its website today that activity for the full year will improve compared with 2012.

Before it's here, it's on the Bloomberg Terminal.