Bloomberg News

Canada Stocks Fall a 6th Day as Metals Slump After Jobs Gains

June 07, 2013

Canadian stocks fell for a sixth day, giving the benchmark equity gauge the longest losing streak in a year, as metals prices tumbled after jobs data from Canada and the U.S. topped estimates.

Agnico Eagle Mines Ltd. and Kirkland Lake Gold Inc. dropped more than 5.6 percent. as the price of gold slumped the most in seven weeks. Silver Standard Resources Inc. and Endeavour Silver Corp. retreated at least 6.6 percent as the price of the metal sank. Catamaran Corp. jumped 3.4 percent after announcing it had made a prepayment on one of its loans. Athabasca Oil Corp. and Trilogy Energy Corp. rallied the most among oil and gas stocks as crude reached a two-week high.

The Standard & Poor’s/TSX Composite Index (SPTSX) fell 36.03 points, or 0.3 percent, to 12,373.30 at 4 p.m. in Toronto. The index has tumbled 2.9 percent in the past six days, the longest slump since May 2012.

“Canada’s just the bad boy of the global markets here, it can’t catch a break,” said Ian Nakamoto, director of research with MacDougall MacDougall & MacTier Inc. in Toronto. The firm manages $4 billion. “Canada has got to come back by commodity prices coming back, and I don’t see that. The pressure on gold stocks has been going on for some time now.”

Canadian employment rose by 95,000 in May, the most since August 2002, and the jobless rate fell to 7.1 percent from 7.2 percent even as more Canadians joined the workforce, Statistics Canada said today in Ottawa.

U.S. payrolls rose 175,000 last month after a revised 149,000 increase in April that was smaller than first estimated, Labor Department figures showed today in Washington. The unemployment rate rose to 7.6 percent from 7.5 percent.

Gold Tumbles

Raw-materials producers sank 3.4 percent as a group, pacing losses in the S&P/TSX. Seven of 10 industries in the benchmark equity gauge advanced, led by health-care and technology stocks. Trading volume was 10 percent lower than the 30-day average.

Kirkland Lake Gold tumbled 5.6 percent to C$5.38 and Agnico Eagle Mines retreated 7.4 percent to C$31.65. Barrick Gold Corp., the world’s largest producer of gold, lost 4.9 percent to C$20.60 as all 29 members of the S&P/TSX Gold Index declined.

Gold futures for August delivery fell 2.3 percent to settle at $1,383 an ounce, as the jobs data boosted concern the Federal Reserve may scale back monetary stimulus. Silver lost 4.2 percent, as both metals slid the most since April 15.

Silver Standard Resources fell 8.3 percent to C$7.53 and Endeavour Silver retreated 6.6 percent to C$4.22.

Telus Slump

Telus Corp. decreased 0.7 percent to C$34.67. The wireless carrier has slumped 3.2 percent in the past three days, after the Canadian government blocked the Vancouver-based company’s bid to acquire smaller competitor Mobilicity in a C$380 million deal.

Athabasca Oil surged 5.2 percent to C$7.48 and Trilogy Energy gained 4.7 percent to C$32.43 as the price of crude rallied 1.3 percent to $96.03 a barrel to settle at the highest since May 21.

Catamaran (CCT) increased 3.4 percent to C$51.25, the biggest advance in three weeks. The provider of pharmacy benefits management services said in a filing today it made a $100 million prepayment on a term loan on June 3. The company now owes $1 billion in the loan.

To contact the reporter on this story: Eric Lam in Toronto at elam87@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net


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