Canada Stocks Little Changed as Tech Slump Offsets Gold RallyGerrit De Vynck
Canadian stocks were little changed after two days of gains as declines in technology and health-care companies offset increases among materials producers.
CGI Group Inc. and Celestica Inc. dropped at least two percent, falling the most among technology companies on the Standard & Poor’s/TSX Composite Index. Bear Creek Mining Corp. surged 35 percent after a Peruvian court threw out a government lawsuit against the company. Ainsworth Lumber Co. decreased 8.7 percent after Louisiana-Pacific Corp. scrapped its takeover of the company.
The S&P/TSX fell 6.08 points, or less than 0.1 percent, to 14,673.73 at 4 p.m. in Toronto. The gauge has climbed 7.7 percent this year. Health-care stocks sank 2 percent and technology companies declined 1.8 percent as a group.
The benchmark index was higher for most of the day, gaining as much as 0.2 percent. It dropped in the final hour of trading as energy shares reversed an advance, falling 0.2 percent as a group.
Investors are nervous about whether or not the year’s rally in Canadian energy stocks will continue, said Mike O’Brien, a fund manager with TD Asset Management Inc. in Toronto.
“There’s a lot of uncertainty as to where it’s going to go and whether crude prices break higher or lower from here,” O’Brien said by phone. “My perspective is I don’t think oil prices are going to fall out of bed.” TD manages about C$218 billion ($200 billion).
Materials companies rose 0.9 percent as a group, the most out of 10 industries in the benchmark index, as the price of gold climbed 0.9 percent $1,305.90 an ounce.
Eldorado Gold Corp. jumped 3 percent to C$6.58 and Yamana Gold Inc. added 5.4 percent to C$8.24 to lead advances among gold producers.
Bear Creek Mining advanced 35 percent to C$2 after rising as much as 45 percent, the most since 2005. A Peruvian court said a ruling from the government to take away the company’s rights to a mine was unconstitutional. The court restored Bear Creek’s status as the property’s owner and said the project was in the country’s interest, according to a statement from Bear Creek.
Ainsworth Lumber fell 8.7 percent to $3.15. Louisiana-Pacific called off its C$951 million takeover of the Vancouver-based company after regulators said further asset sales were necessary.
Valeant Pharmaceuticals International Inc. dropped 2.3 percent to C$138.22 after saying it plans to sweeten its rejected cash-and-stock offer for Botox maker Allergan Inc. after talking to investors of the targeted company.
Badger Daylighting Ltd., an excavating company, retreated 2.8 percent to C$36 after saying first-quarter earnings per share fell compared to the same period last year.
SunOpta Inc. increased 12 percent to C$13.78 after reporting first-quarter earnings that beat analyst estimates. SunOpta distributes natural and organic food.
Torc Oil & Gas Ltd. gained 4.5 percent to C$13.61 after boosting its forecast for 2014 production.
Sears Canada Inc. rose 3.4 percent to C$16.30 after Sears Holdings Corp. said it is considering selling the Canadian unit, which has a market value of $1.5 billion.