Canadian Stocks Close Lower; BMO Weighs on TSX; Baja Mining Corp. Most Active
Canadian stocks closed down on Tuesday, most sectors were lower led down by Financials and Industrials.
Financials were under pressure today after Bank of Montreal, the countries 4th largest bank, released earnings that were perceived worse than expected.
For the fourth quarter ended October 31, 2013, BMO Financial Group (BMO, BMO.TO) reported net income of $1,088 million or $1.62 per share on a reported basis and net income of $1,102 million or $1.64 per share on an adjusted basis. This adjusted EPS figure appeared to easily beat expectations for $1.58.
Brian Klock at Keefe, Bruyette & Woods on BNN TV cited a near $0.20 securities gain in the banks loan portfolio. When that is taken out it earnings would be a miss.
Baja Mining Corp. (BAJ.TO) was the most active stock on the TSX. Today the company was advised by SRK Consulting Inc. that it is unable to provide the company with a draft of the updated NI 43-101 technical report on the Boleo Project as previously anticipated due to the ongoing discussions between the mining department of Minera Metalurgica del Boleo, S.A.P.I. de C.V., its geotechnical and mining consultants, and those of MMB's senior lenders regarding certain key aspects of the Boleo mine plan on which consensus remains to be established. The stock closed down 67% with 36 million shares changing hands.