Canada Stocks Fall as Teck, Canadian National TumbleEric Lam
Canadian stocks fell, after halting a two-day slide yesterday, as Canadian National Railway Co. and Teck Resources Ltd. dropped amid earnings reports.
Teck Resources plunged 6.4 percent after slashing its dividend for the first time since the financial crisis. Canadian National Railway declined 3.1 percent after the rail operator lowered its 2015 forecast for commodity shipments. Pason Systems Inc. sank 5.9 percent after analysts at CIBC World Markets cut their rating for the stock.
The Standard & Poor’s/TSX Composite Index lost 66.16 points, or 0.4 percent, to 15,346.44 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has advanced 4.9 percent this year, one of the worst performers among developed markets tracked by Bloomberg.
Canadian National Railway tumbled 3.1 percent to pace declines as industrials shares lost 2.2 percent as a group, the most in the S&P/TSX. Five of 10 industries in the equity gauge fell on trading volume that was 11 percent lower than the 30-day average.
The railway said it now forecasts customer shipments of energy-related commodities, including crude, will increase by 40,000 carloads in 2015, compared with its January projection of a 75,000 gain.
Trican Well Service Ltd. dropped 9.1 percent and Pacific Rubiales Energy Corp. lost 7.3 percent as energy producers retreated 1.2 percent as a group.
Oil dropped the most in two weeks as crude inventories probably increased by 2.5 million barrels last week, a Bloomberg survey showed before an Energy Information Administration report Wednesday.
Teck Resources sank 6.4 percent to the lowest since January. The second-largest exporter of coal used in steelmaking cut its biannual dividend 67 percent, the first reduction since Teck halted its payout in November 2008. First-quarter adjusted profit fell short of analysts’ estimates.
Valeant Pharmaceuticals International Inc. jumped 3.3 percent, halting a five-day slide, and Concordia Healthcare Corp. rose 2.8 percent. Teva Pharmaceutical Industries Ltd. made an unsolicited $40.1 billion offer to buy Mylan NV, the drug industry’s largest takeover attempt this year.
Brookfield Asset Management Inc. lost 3.6 percent, the biggest drop since October 2011. The company is issuing shares to raise about $1 billion for “general corporate purposes” including future investments.