Canada Stocks Snap 3-Day Rally Amid Crises in Egypt and PortugalEric Lam
Canadian stocks fell for the first time in four days, as unrest in Egypt and a political crisis in Portugal roiled global markets.
BlackBerry extended its loss to 33 percent in the three sessions since reporting disappointing sales for its Z10 smartphone on June 28. Sandvine Corp., a broadband network tools provider, slumped 7.6 percent as second-quarter sales missed estimates. Alamos Gold Inc. rose 4 percent as the price of the precious metal advanced.
The Standard & Poor’s/TSX Composite Index fell 32.70 points, or 0.3 percent, to 12,145.68 at 4 p.m. in Toronto, trimming an earlier decline of as much as 1 percent. The gauge has fallen 2.3 percent this year. Trading volume was 32 percent below the 30-day average.
“We don’t know if the situation in Egypt will get out of hand and whether it will spread into other countries,” said Irwin Michael, fund manager with ABC Funds in Toronto. He helps manage about C$800 million ($759 million). “In Portugal, two members resigned and they’re worried about that spreading to Spain as well. The sovereign debt issue appears to be flaring up in Europe. There’s a lot of uncertainty right now, in the context of a long weekend in the U.S., so we expect the market between now and when you come in on Monday to be very volatile.”
The MSCI All-Country World Index dropped 0.5 percent as Egypt’s military ousted President Mohamed Mursi from power, suspended the constitution and announced an early presidential election in a bid to resolve the political crisis that has polarized the nation. Oil spiked to a 14-month high amid concern the turmoil will disrupt shipments in the Suez Canal. Portugal’s main equity gauge slumped 5.3 percent after two ministers resigned as the country struggles to implement budget cuts.
Nine of 10 industries in the S&P/TSX retreated today, with materials producers the only group to advance. U.S. markets closed at 1 p.m. in New York, erasing early losses to advance 0.1 percent. The American exchanges remain closed July 4 for the Independence Day holiday.
BlackBerry slid 1.4 percent to C$10.08. The company formerly known as Research In Motion Ltd. last week missed analysts’ estimates for phone shipments and profit. The Waterloo, Ontario-based smartphone maker has slipped 15 percent this year.
Sandvine sank the most since September, losing 7.6 percent to C$1.95. The company reported second-quarter sales of $23.5 million, short of analyst estimates of $24.9 million. It also posted adjusted earnings of 1 cent, in line with expectations.
Utilities stocks tumbled 1.7 percent to pace losses in the S&P/TSX. Canadian Utilities Ltd. lost 3.4 percent to C$35.50 and Atlantic Power Corp. declined 3.8 percent to C$4.08.
Energy shares slumped 0.2 percent, paring an earlier decline of as much as 0.8 percent. Crude for August delivery rallied 1.6 percent to the highest since May 3, 2012. Encana Corp. retreated 0.5 percent to C$17.85 and Enbridge Inc. slid 0.8 percent to C$44.53.
Raw-materials producers added 1.1 percent as gold and silver prices advanced in New York. Alamos Gold rose 4 percent to C$13.09 and Centerra Gold Inc. climbed 6 percent to C$3.54. First Majestic Silver Corp. rallied 6.7 percent to C$11.61 to lead gains among silver stocks.