Canadian Stocks Little Changed Near Record as Gold DropElena Popina
Canadian stocks ended little changed, with the benchmark index near an all-time high, as declines in gold mining companies were offset by gains in financial shares.
Alamos Gold Inc. and Goldcorp Inc. fell more than 3.5 percent as the metal fell to a two-month low on the outlook for higher U.S. interest rates. Whitecap Resources Inc. rose 7.8 percent after Canaccord Genuity said the company has the potential to increase its dividend by 10 to 15 percent in the next 12 months.
The Standard & Poor’s/TSX Composite Index declined 6.69 points, or less than 0.1 percent, to 15,555.26 at 4 p.m. in Toronto. The benchmark equity gauge has climbed 14 percent this year, the second-best performer among the world’s developed markets behind Denmark. It reached a record of 15,561.95 yesterday.
Six of 10 industries in the S&P/TSX declined on trading volume 18 percent above the 30-day average. Raw-materials producers slid 1.9 percent for the biggest decline, as gold dropped 1.5 percent in New York. Oil dropped 0.5 percent.
A Chinese Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics slid to 50.3 this month, missing the 51.5 projected in a Bloomberg survey. Euro-area manufacturing and services activity slowed in August, a preliminary report showed today.
Financial stocks, which account for the biggest weighting in the broader index, added 0.5 percent. Royal Bank of Canada rose 0.1 percent to C$81.67. The lender is scheduled to report third-quarter earnings tomorrow.
Cameco Corp. dropped 4.1 percent to C$21.62 after Cowen & Co. equity analyst Daniel Scott cut the stock to market perform, the equivalent of hold, from outperform.