Canadian Stocks Down More Than 100 Pts As Miners Continue Slide
Canadian stocks are broadly lower, with the S&P/TSX Composite Index down more than 100 points, or 0.8%, and near session lows.
All 10 industry sectors in the TSX Composite are in the red, led by a 1.25% slide for mining stocks amid reports Chinese Premier Li Keqiang said the country has limited room to use government spending and policy stimulus to boost its economy, likely reducing demand for raw materials in the future.
Among individual miners, Aurizon Mines Ltd (ARZ.TO, AZK) is down about 2% after posting a Q1 net loss of $0.02 per share, reversing a year-ago $0.05 per share profit and trailing analyst forecasts looking for a break-even quarter.
Revenue slid nearly 24% from year-ago levels to $43.2 mln but still managed to beat the Street view by $2.65 mln. Revenue was adversely affected by a 4.2% decline in the price of gold from the same quarter last year as well as a 21.5 drop in the amount of gold sold by the company in Q1 compared to last year.
Shares of energy companies also are lower, falling about 0.9%, after the U.S. government's weekly inventory report found a 2.6-mln-barrel rise in gasoline supplies during the week ended May 11, suggesting reduced demand following recent price gains. But crude oil inventories fell last week by 600,000 barrels to 394.9 mln barrels, still well above the five-year average for this time of the year.
In other company news, shares of smartphone-maker Blackberry Inc (BB.TO,BBRY) are down about 2% after the stock was cut to Market Perform at Alliance Bernstein, citing lack of catalysts the next six months. Price target for the stock also was reduced by $7 to $22.
The company yesterday said at its annual developers' conference in Orlando it will roll out a new phone that will run on its latest operating systems and target customers in the developing world. But BBRY also said it is pushing back the U.S. launch of its Q10 smartphone to early June from later this month, disappointing investors.
Smartphone company reports a diverse range of sectors - including high tech, banking, retail and government - have adopted Blackberry 10 and Blackberry Enterprise Service 10.