Canada Stocks Fall, Ending 4-Day Winning Streak After China Data

Canadian stocks fell for the first time in five days amid rising tension in Ukraine and data showing that Chinese manufacturing shrank for a fourth month.

Ritchie Bros. Auctioneers Inc. fell 7.5 percent after reporting quarterly revenue that trailed analyst estimates. PNI Digital Media Inc. rose 32 percent after Staples Inc. said it would buy the company at a 32 percent premium.

The Standard & Poor’s/TSX Composite Index fell 68.12 points, or 0.5 percent, to 14,697.03 at 4 p.m. in Toronto, the biggest decline in three weeks. The gauge is up 7.9 percent this year.

Ukraine said four of its soldiers were killed and a helicopter shot down during fighting with pro-Russian separatists in the country’s east. China’s purchasing managers’ index from HSBC Holdings Plc and Markit Economics Ltd. was 48.1 in April, missing an average analyst projection of 48.4.

China is a key export destination for Canadian commodities. Slack demand from that country’s manufacturers can harm Canadian companies from all industries, said Anish Chopra, a fund manager at TD Asset Management Inc.

“You get follow-on effects,” he said by phone from Toronto. “Certainly you’ve got an interrelated economy so it’s going to impact commodity stocks but also to some extent the other areas as well.” Chopra helps manage about C$220 billion ($200 billion) with the firm.

Nine out of 10 industries on the benchmark index fell, led by raw-materials, industrial and technology companies.

Ritchie Bros, which auctions off industrial equipment, fell 7.5 percent to C$25.50. The Burnaby, British Columbia-based company said it earned $17.7 million from operations in the first three months of 2014 compared with $21.6 million for the same period last year.

Market Movers

PNI Digital Media, which makes software for retailers, rose 32 percent to C$1.70. Staples said in a statement it would buy the company for C$1.70 a share, or a net equity value of about C$73.9 million.

BlackBerry Ltd. fell 3 percent to C$8.68. The Canadian smartphone maker said it would sell the majority of its Canadian real estate to Spear Street Capital LLC for C$305 million.

Alaris Royalty Corp. rose 4.9 percent to C$28.13 after posting first-quarter results that beat analyst estimates. The Calgary-based private equity firm reported earnings per share of 41 Canadian cents, while analysts had predicted 33 Canadian cents.

Columbus Gold Corp. fell 12 percent to 41 Canadian cents after saying a contractor hired to check its Montagne D’Or gold property believes another contractor overstated how much gold is in the deposit.

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