Canadian Stocks Fall as BlackBerry Drop Offsets Air Canada RallyGerrit De Vynck
Canadian stocks fell for a second day, erasing gains in the afternoon as a selloff in U.S. technology shares dragged down BlackBerry Ltd., overshadowing better-than-expected jobs data.
BlackBerry slumped 2.7 percent, closing at a three-month low. Hydrogenics Corp. dropped 11 percent after reporting first-quarter revenue that missed estimates because of the timing of deliveries. Air Canada jumped 27 percent after raising its first-quarter forecast.
The Standard & Poor’s/TSX Composite Index slipped 9.11 points, or 0.1 percent, to 14,393.10 at 4 p.m. in Toronto. The benchmark index has rallied 0.9 percent this week, and is up 5.7 percent for the year.
Stocks rose earlier in the day as data showed that employment rose by 42,900, the most in seven months. The jobless rate fell to 6.9 percent from 7.0 percent, Statistics Canada said today in Ottawa.
“I don’t read this through to a stronger Canadian economy, I think it’s decent,” said Kevin Headland, a fund manager with Manulife Asset Management Ltd, by phone. Manulife manages about C$250 billion ($227.8 million). “As long as we see positive news, things are getting better, improving slowly but surely.”
BlackBerry retreated 3.3 percent to C$8.77, the lowest close since Jan. 6, as information technology shares sank 1.1 percent as a group. Five of 10 industries in the S&P/TSX fell on trading volume 6 percent lower compared with the 30-day average.
Air Canada rose 27 percent to C$7.29. The airline increased its outlook for first-quarter earnings. The company has risen 124 percent over the last year.
Hydrogenics, which makes hydrogen fuel cells, fell 11 percent to C$26 after saying first-quarter revenue would miss estimates.
DHX Media Ltd. rose 8 percent to C$5.23, the biggest increase since December, as analysts at the Royal Bank of Canada said the company’s purchase of Epitome Pictures Inc. could add about 10 percent to DHX’s earnings in 2015.
Suncor Energy Inc. rose 0.8 percent to C$39.52. The company’s shares have underperformed this year compared with other oil companies despite its “extremely strong” balance sheet, according to a research report from Canaccord Genuity Corp.
Eldorado Gold Corp. rose 2.7 percent to C$6.55 after Canaccord analyst Tony Lesiak said in a note to clients the company was “now worth the risk” after the shares recently underperformed. Lesiak raised his recommendation on the stock to buy from hold.