Canada Stocks Fall as Technology Slump Offsets Commodity SharesGerrit De Vynck
Canadian stocks fell, snapping a two-day gain, as a decline in China’s exports and imports weighed on raw-material and industrial companies.
Goldcorp Inc. fell 3 percent after increasing its hostile bid for Osisko Mining Corp. to trump another offer by Yamana Gold Inc. Crew Energy Inc. rose 17 percent after buying natural gas fields in northeast British Columbia.
The Standard & Poor’s/TSX Index lost 119.43 points, or 0.8 percent, to 14,316.15 at 1:23 p.m. in Toronto. The gauge rallied
1.2 percent over the previous two days as the U.S. Federal Reserve said it wouldn’t raise rates any time soon.
“The Chinese data that we had overnight in Asia was weaker than expected and that took away some of the momentum post-Fed, so that’s what we’re seeing today” said Youssef Zohny, a portfolio manager at Stenner Investment Partners of Richardson GMP Ltd. Richardson GMP manages about C$26 billion ($23.8 billion).
Overseas shipments fell 6.6 percent from a year earlier, according to China’s customs administration, attributing part of the drop to inflated data in early 2013. Imports fell 11.3 percent, resulting in a trade surplus of $7.71 billion.
Industrial companies fell 1.1 percent as a group, led by losses in ATS Automation Tooling Systems Inc., which makes manufacturing machines and fell 2.6 percent to C$14.50.
Goldcorp fell 3 percent to C$27 after raising its bid for Osisko to C$7.65, more than a dollar above its previous cash and stock bid, worth about C$6.29.
Osisko rose 0.9 percent to C$7.62. Yamana, which offered to buy half of Osisko at a value of C$7.60 a share, was little changed.
Crew Energy rose 17 percent to C$11.63 after selling one patch of natural gas assets for around C$222 million and buying assets in a different area for C$105 million.
Argent Energy Trust fell 28 percent to C$3.35 after cutting its production forecast and announcing its chief executive officer resigned.
Painted Pony Petroleum Ltd. rose 8.3 percent to C$10.31 after the company increased its production outlook in the same area Crew Energy bought new assets, the Montney formation.
Dollarama Inc. fell 3.7 percent to C$89.52 after three different analysts cut their ratings on the discount retailer. Dollarama rose 8.4 percent yesterday after reporting fourth quarter earnings that were higher than analyst expectations.