Canadian Stocks Fluctuate After Four Days of GainsGerrit De Vynck
Canadian stocks rose for a fifth day as losses among telecommunications companies were overshadowed by gains in mining and industrial companies.
Telus Corp. fell 0.9 percent to lead losses among telecommunications companies. Transcontinental Inc. added 2.1 percent after second-quarter earnings beat analyst estimates. Detour Gold Corp. rose 7.9 for the best performance among mining shares.
The Standard & Poor’s/TSX Composite Index gained 3.39 points, or less than 0.1 percent, to 14,800.18 at 4 p.m. Telecommunications companies have risen 7.6 percent this year as Telus and BCE Inc. add mobile phone subscribers.
The European Central Bank cut its deposit rate to minus 0.1 percent in a bid to ward off deflation. The stimulus announcement didn’t have a big effect on the Canadian market because the move was expected, said Irwin Michael, who helps oversee C$900 million ($820 million) as a fund manager at ABC Funds in Toronto.
“It was the worst-kept secret, we knew they would have to do something,” Michael said by phone. “They’ve got to get things moving there so we’re not surprised.”
Energy companies fell 0.2 percent as a group. ShawCor Ltd., Cameco Corp. and Husky Energy Inc. fell the most among energy companies on the benchmark index, dropping at least 1.4 percent. Material producers rose 0.8 percent and industrial companies gained 0.6 percent.
Transcontinental rose 2.1 percent to C$15.41. The Montreal-based company, which owns newspapers and prints advertising fliers, made 47 Canadian cents per share in the second quarter compared with an average estimate from analysts of 43 Canadian cents.
Cogeco Cable Inc. fell 3.4 percent to C$61.80 as TD Securities cut its rating. The company is up 29 percent this year.
Just Energy Group Inc. rose 6.5 percent to C$6.55 after saying it would pay down debt and sell its water heater business for C$505 million.
Detour Gold gained 7.9 percent to C$11.35 after Raymond James Ltd. raised its rating on the stock to a strong buy from outperform and the price of gold climbed the most in two weeks.