Canadian stocks fell, after the biggest weekly advance since February, as raw-material and energy shares slumped amid further delays in the Keystone XL pipeline approval process.
TransCanada Corp. dropped 3.6 percent to lead declines among energy companies after the U.S. State Department said it would delay a decision on whether to approve the Keystone XL pipeline. Penn West Petroleum Ltd. fell 3.2 percent.
Barrick Gold Corp. lost 3.4 percent as talks over a merger with Newmont Mining Corp. were said to break down. The Standard & Poor’s/TSX Index slipped 19.12 points, or 0.1 percent, to 14,481.27 at 2:24 p.m. in Toronto.
The gauge climbed 1.7 percent last week for the largest increase since Feb. 14, reaching the highest level since 2008.
“I’m of the view that there won’t be any decision made on XL until after the midterm elections and then it’s to be seen whether or not President Obama will even approve this while he is still president,” said John Goldsmith, a Toronto-based fund manager who helps manage about C$5.6 billion ($5.1 billion) at Montrusco Bolton Investments Inc.
The U.S. congressional elections are slated for next November. The U.S. State Department, which is studying whether the Keystone project is in the country’s interest, said on April 18 that it would hold off making its recommendations until the Nebraska state Supreme Court made a ruling on a legal challenge to the pipeline.
TransCanada retreated 3.6 percent to C$49.46. Penn West Petroleum dropped 3.2 percent to C$9.99. Barrick Gold lost 3.4 percent to C$19.14.
Merger negotiations between Barrick and Newmont broke down three days ago, according to people familiar with the talks.A merger between the companies would bring together the world’s two largest gold miners.
Gold Mergers
The prospect of more mergers and acquisitions in the gold market could push up valuations for other producers, said Goldsmith.
“If the two biggest players in the industry are looking to get hitched up, I think it’s safe to say everybody else is a potential target,” he said by phone.
Osisko Mining Corp. dropped 5.5 percent to C$7.56 after Goldcorp Inc. said it wouldn’t increase its hostile offer for Osisko, ending a bidding war against Yamana Gold Inc. and Agnico Eagle Mines Ltd. Yamana fell 5.1 percent to C$8.31 and Agnico fell 5 percent to C$29.69.
Goldcorp rose 1.7 percent to C$26.44. Lululemon Athletica Inc. declined 1.2 percent to C$63.77 after Sam Poser, an analyst with Sterne Agee & Leach Inc., said he was disappointed at the lack of medium- and long-term financial targets given at the retailer’s investor day last week.
The stock lost 5.7 percent to $48.74 in New York, the most since February. Teck Resources Ltd. fell 1.2 percent to C$24.03 before the company’s earnings report tomorrow.
The average analyst estimate for first-quarter sales is C$2.13 billion, 10 percent lower than the previous quarter. Tweed Marijuana Inc. rose 13 percent to C$3.78 after the medical marijuana producer said in a statement that forecast demand for its cannabis is higher than it had previously projected.
bloomberg.com
TransCanada Corp. dropped 3.6 percent to lead declines among energy companies after the U.S. State Department said it would delay a decision on whether to approve the Keystone XL pipeline. Penn West Petroleum Ltd. fell 3.2 percent.
Barrick Gold Corp. lost 3.4 percent as talks over a merger with Newmont Mining Corp. were said to break down. The Standard & Poor’s/TSX Index slipped 19.12 points, or 0.1 percent, to 14,481.27 at 2:24 p.m. in Toronto.
The gauge climbed 1.7 percent last week for the largest increase since Feb. 14, reaching the highest level since 2008.
“I’m of the view that there won’t be any decision made on XL until after the midterm elections and then it’s to be seen whether or not President Obama will even approve this while he is still president,” said John Goldsmith, a Toronto-based fund manager who helps manage about C$5.6 billion ($5.1 billion) at Montrusco Bolton Investments Inc.
The U.S. congressional elections are slated for next November. The U.S. State Department, which is studying whether the Keystone project is in the country’s interest, said on April 18 that it would hold off making its recommendations until the Nebraska state Supreme Court made a ruling on a legal challenge to the pipeline.
TransCanada retreated 3.6 percent to C$49.46. Penn West Petroleum dropped 3.2 percent to C$9.99. Barrick Gold lost 3.4 percent to C$19.14.
Merger negotiations between Barrick and Newmont broke down three days ago, according to people familiar with the talks.A merger between the companies would bring together the world’s two largest gold miners.
Gold Mergers
The prospect of more mergers and acquisitions in the gold market could push up valuations for other producers, said Goldsmith.
“If the two biggest players in the industry are looking to get hitched up, I think it’s safe to say everybody else is a potential target,” he said by phone.
Osisko Mining Corp. dropped 5.5 percent to C$7.56 after Goldcorp Inc. said it wouldn’t increase its hostile offer for Osisko, ending a bidding war against Yamana Gold Inc. and Agnico Eagle Mines Ltd. Yamana fell 5.1 percent to C$8.31 and Agnico fell 5 percent to C$29.69.
Goldcorp rose 1.7 percent to C$26.44. Lululemon Athletica Inc. declined 1.2 percent to C$63.77 after Sam Poser, an analyst with Sterne Agee & Leach Inc., said he was disappointed at the lack of medium- and long-term financial targets given at the retailer’s investor day last week.
The stock lost 5.7 percent to $48.74 in New York, the most since February. Teck Resources Ltd. fell 1.2 percent to C$24.03 before the company’s earnings report tomorrow.
The average analyst estimate for first-quarter sales is C$2.13 billion, 10 percent lower than the previous quarter. Tweed Marijuana Inc. rose 13 percent to C$3.78 after the medical marijuana producer said in a statement that forecast demand for its cannabis is higher than it had previously projected.
bloomberg.com
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