Bloomberg News

Canadian Stocks Fall as Gold Slumps After BOJ Policy Unchanged

June 11, 2013

Canadian stocks fell, sending the benchmark equity gauge to its lowest since April, as commodities producers plunged after Bank of Japan Governor Haruhiko Kuroda left a stimulus program unchanged.

Energy and raw-materials stocks slumped the most out of 10 groups (SPTSX) in the Standard & Poor’s/TSX Composite Index amid investor concern central banks will reduce or refrain from expanding stimulus measures. Lululemon Athletica Inc. tumbled 16 percent on the Toronto Stock Exchange after announcing that Chief Executive Officer Christine Day will leave. Kinross Gold Corp. lost 4.5 percent after deciding to stop developing a mining project in Ecuador.

The S&P/TSX declined 1 percent to 12,256.16. The benchmark gauge for Canadian equities has fallen in seven of the last eight trading days. Volume was in line with the 30-day average at this time of day.

BOJ policy makers refrained from expanding their tools to address bond-market volatility. The central bank left its one-year fixed-rate loan facility unaltered and Governor Haruhiko Kuroda said the BOJ will consider longer funding operations if they become necessary.

Commodities fell for the second consecutive day, led by metals. Aluminum dropped 1.6 percent and copper declined 1.5 percent. Brent crude slipped 2 percent to $101.91 a barrel.

To contact the reporter on this story: Inyoung Hwang in New York at ihwang7@bloomberg.net

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


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