Canadian stocks fell, sending the
benchmark index to a three-week low, as BlackBerry Ltd. (BB) slumped
and the U.S. government shutdown extended to a third day.
BlackBerry, the smartphone maker looking to sell itself,
lost 3.6 percent to pace declines among technology stocks.
WestJet (WJA) Airlines Ltd. dropped 2.5 percent as load factor slipped
in September. Valeant Pharmaceuticals International Inc. rose
1.4 percent after receiving approvals for products in the U.S.
and Canada. Agrium Inc. added 0.7 percent after naming a
successor for its retiring chief executive officer.
The Standard Poor’s/TSX Composite Index (SPTSX) fell 103.88
points, or 0.8 percent, to 12,735.12 at 4 p.m. in Toronto, the
lowest close since Sept. 13. The index has gained 2.4 percent
this year for the second-worst performance among developed
markets, ahead of only Singapore.
“Markets are in a wait-and-see approach to see what’s
happening in the U.S. and that really determines what happens in
Canada,” said Anish Chopra, fund manager with TD Asset
Management Inc. in Toronto. His firm manages about C$216 billion
($209 billion). “In the past they’ve been able to get to last-minute deals. In this case it might be more of a comprehensive
package that includes the debt ceiling. The problem is the
ceiling may not be exactly Oct. 17, it could be later and that’s
a long way away.”
The first face-to-face talks between U.S. President Barack Obama and congressional leaders failed to break the budget
logjam as a partial U.S. government shutdown entered its third
day. The Oval Office meeting yesterday evening ended with both
sides reiterating their positions and the points they’ve been
making for days, increasing the possibility for a prolonged
standoff over the government shutdown and raising the U.S. debt
limit.
WestJet Falls
WestJet declined 2.5 percent to C$25.41 as industrial
stocks retreated 0.9 percent as a group. Nine of 10 industries
in the SP/TSX fell. Trading volume was in line with the 30-day
average.
WestJet, based in Calgary, reported a September load factor
of 76.6 percent, compared with a record 79.1 percent in the same
period last year, the company said in a statement. Load factor
is a measure of airline efficiency relative to capacity.
BlackBerry dropped 3.6 percent to C$7.97, the lowest close
in almost a year. Pierre Ferragu, analyst with Sanford C.
Bernstein, cut his rating for the stock to underperform, the
equivalent of a sell.
Tentative Offer
Fairfax Financial Holdings Ltd., which has a tentative $4.7
billion offer in place for the struggling smartphone maker, is
unlikely to get financing, as BlackBerry’s cash position is
worse than expected, Ferragu said.
Imax Corp., the big-screen cinema company, slumped 8.7
percent to C$26.77, the worst decline since July 2011. Analyst
David McFadgen of Cormark Securities Inc. lowered his rating for
the stock to reduce, the equivalent of sell. Imax has jumped 20
percent this year.
Suncor Energy Inc. slipped 1.3 percent to C$36.32 and
Talisman Energy Inc. lost 2.3 percent to C$12.52 as crude fell
for a third day this week on concern the U.S. government
shutdown will reduce fuel demand.
Valeant Pharmaceuticals gained 1.4 percent to C$114.91, a
record high, after the drugmaker’s Bausch and Lomb unit won
approval from the U.S. Food and Drug Administration for a
monthly disposable contact lens product.
Valeant also secured regulatory approval in Canada for a
topical treatment of nail infections caused by fungi.
Agrium, the largest U.S. farm products retailer, added 0.7
percent to C$88.87. The company named Chuck Magro, currently
chief operating officer, as the successor to CEO Mike Wilson,
effective at the beginning of next year. Wilson plans to retire
at the end of the year after 10 years as CEO.
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
Canada Stocks Fall to a Three-Week Low Amid US Budget Impasse
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