Canadian Stocks Fall for Second Day as Banks Retreat on Earnings

Aug 28, 2014 4:25 pm ET

Aug. 28 (Bloomberg) -- Canadian stocks fell the most in three weeks, joining a slump in global markets as the conflict in Ukraine deepened and banks declined after reporting earnings.

Laurentian Bank of Canada slumped 3.3 percent after posting profit and revenue short of analysts’ estimates. Canadian Imperial Bank of Commerce retreated 2.2 percent as credit-card revenue declined. First Quantum Minerals Ltd. and Teck Resources Ltd. declined at least 1.6 percent as copper sank the most in more than four months. B2Gold Corp. and Goldcorp. Inc. rose as gold climbed to the highest in a week.

The Standard & Poor’s/TSX Composite Index lost 44.48 points, or 0.3 percent, to 15,558.17 at 4 p.m. in Toronto, the biggest decline since Aug. 7. The benchmark Canadian equity gauge closed at a record 15,619.21 on Aug. 26.

Laurentian Bank slid 3.3 percent to C$49.91, the biggest decline since December, as financial stocks retreated 0.8 percent as a group. Trading volume was 16 percent below the 30- day average.

Canadian stocks have surged 14 percent this year, making the S&P/TSX the second-best performer among developed equity markets behind Denmark.

CIBC, TD

CIBC lost 2.2 percent to C$103.23, the most in a year. Credit card revenue declined after the bank sold half of its Aerogold Visa portfolio to Toronto-Dominion Bank in December.

Toronto-Dominion, Canada’s largest lender by assets, slipped 0.8 percent. The bank reported higher earnings from domestic consumer lending and investment banking.

The MSCI All-World Index dropped 0.4 percent, snapping a three-day rally, as tensions increased in the conflict between Russia and Ukraine.

Ukrainian President Petro Poroshenko called an emergency meeting to defend what he called a “de facto” Russian incursion after separatists gained ground in intensified fighting. The U.S. said Russia may be directing the attacks, falling short of calling it an invasion.

The U.S. economy grew at a 4.2 percent annualized rate, up from an initial estimate of 4 percent and following a first- quarter contraction, data today showed. The median forecast of 77 economists surveyed by Bloomberg called for a 3.9 percent gain.

Athabasca Oil Corp. advanced 2.7 percent to C$7.59 after PetroChina said it will pay the company for its stake in the Dover oil sands project soon, Reuters reported.