Canadian Stocks Drop to Three-Week Low on Ukraine TensionJacob Barach
Canadian stocks fell to a three-week low as the conflict over Ukraine worsened and earnings from Air Canada and Trinidad Drilling Corp. disappointed investors.
Air Canada, the country’s biggest carrier, dropped 8.1 percent after saying yields would continue to decline this year as it packs fuller planes. Trinidad Drilling sank 4.4 percent after earnings fell short of analyst estimates. Lightstream Resources Ltd., an oil exploration company, lost 8 percent after production fell.
The Standard & Poor’s/TSX Composite Index fell 83.32 points, or 0.6 percent, to 15,118.77 at 4 p.m. in Toronto. Health-care shares led declines among the main industries in the equity gauge, falling 2 percent.
Russia slapped import bans on an array of food goods from the U.S. and Europe and threatened to target the automotive, shipping and aerospace industries, striking back at sanctions over the conflict in Ukraine. The curbs target nations that sanctioned or supported punitive measures against Russia and also include Canada, Australia and Norway.
Air Canada dropped for a sixth day, the longest streak since 2011. The shares fell 8.1 percent to C$8.51. Yield, or average fare per mile, declined 2.1 percent in the second quarter, the company said today. Chief Executive Officer Calin Rovinescu said yields will continue to fall this year as the airline adds more economy class seats and operates longer flights with a view to boosting profit.
Trinidad Drilling slipped 4.4 percent to C$9.99. The company reported lower-than-estimated revenue and results were affected by re-activitating rigs to meet additional demand, leading to additional costs.
Lightstream Resources slumped 8 percent to C$6.31. The company cited reduced field activity for the drop in second-quarter production.
Semafo Inc. rose 10 percent to C$5.32. The gold producer said that it sees output reaching the upper-end of its estimates for the year. The company also beat analyst’s earnings estimates.
Pason Systems Inc., which rents oilfield equipment, jumped 11 percent to C$31.68. The company boosted its dividend and reported higher earnings from the previous year.