Canada Stocks Fall to 4-Month Low as Industrials Slide With OilEric Lam
Canadian stocks fell to a four-month low as declines among industrial shares and energy producers offset an advance in gold miners.
Finning International Inc. tumbled 3.1 percent after analysts at Canaccord Genuity Corp. cut their rating for the stock to a hold from a buy. Air Canada jumped 3.9 percent after reporting gains in capacity and traffic in September. Torex Gold Resources Inc. rose 3.8 percent as gold increased from the lowest price this year.
The Standard & Poor’s/TSX Composite Index fell 46.66 points, or 0.3 percent, to 14,743.12 at 4 p.m. in Toronto, the lowest close since June 3. The equity gauge has risen 8.2 percent this year.
Eight of 10 industries in the benchmark gauge declined on trading volume 3.6 percent below the 30-day average today.
Energy stocks fell 0.4 percent as a group, erasing earlier gains for a fifth straight decline. Oil rebounded from declines after gasoline futures climbed on reports that units at Irving Oil Corp.’s Saint John, New Brunswick, refinery will be shut for unplanned repairs through Nov. 20.
The Canadian plant has the capacity to process 298,800 barrels a day of oil and exports over half of its refined products to the U.S. Northeast. The refinery will keep its largest fluid catalyst cracker closed, according to two people familiar with the repairs.
Brent crude earlier fell to a 27-month low after Saudi Arabia cut its oil prices to all destinations, prompting speculation the world’s biggest exporter won’t lead supply cuts by the Organization of Petroleum Exporting Countries.
Air Canada soared 3.9 percent to C$8.18 after reporting a system load factor of 84.7 percent in September, compared with 83.2 percent a year ago, on higher system capacity. Load factor is a measure of airline efficiency relative to capacity.
Postmedia Network Canada Corp., operator of the National Post, jumped 11 percent to C$2.50 after agreeing to buy 175 newspapers and trade publications for C$316 million ($282 million) from Quebecor Inc.
The sale includes English-language publications Toronto Sun and Calgary Sun, as well as the Canoe.com website and real-estate properties.