Canadian stocks went down for the 5th straight day, thereby erasing the gains that it experienced in the earlier part of this year. The Canadian Western Bank reported lower profit than what was estimated and there are signs of weakening growth of China. That’s not all; Germany spurred losses in the commodity producers as well.
The benchmark stock gauge Standard & Poor’s/TSX Composite Index went down by 52.80 points and the same is currently at 12,390.85. The index has lost 0.3% in 2013; thereby it has erased the gains experienced earlier. The overall trading volume on today was 19% less in comparison with that of the last 30 days.
According to the Chief Investment Officer of Fin-XO Securities Inc., Stephen Gauthier, due to the overnight news in Germany and Asia, the trend is currently at downside for the market. Gauthier added that under the current circumstances, the economic picture does not look pretty good.
When it comes to Germany, the factory orders went down more than what was forecasted for April. On the other hand, in China, the export growth grew at half the pace of what it was for a month earlier, as far as the comments of the economists are concerned. The actual data is all set to release on 8th June. China, incidentally, is the biggest consumer of copper in the world.
Canadian Western Bank declined by 1.8% and each share of the same is currently priced at C$28.02. The 2nd quarter adjusted earnings report of the lender has been of 55 Canadian cents per share and this is less than the predicted 57 cents per share.
The largest diversified mining company of Canada by market value, Teck Resources Ltd. went down by 0.8% as copper header for the largest loss of the same in the last couple of weeks. Each of its shares is currently priced at C$26.91. On the other hand, the shares of First Quantum Minerals Ltd. went down by 0.7% as each share is now at C$18.41. Rio Alto Mining Ltd. also went down by 3.1% and this was the biggest decline among the mining companies listed in S&P/TSX. Rio Alto, incidentally, is developing a gold and copper project in Peru. The manufacturer of rail transportation and aircraft, Bombardier, experienced a surge of 1.4% and each share of it is at C$4.93.