EnCana, Manulife, Scotiabank, Rogers: Canada Equity Preview

By John Kipphoff

Oct. 28 (Bloomberg) -- The following companies may have unusual price changes in Canadian trading today. Stock symbols are in parentheses, and share prices are from yesterday's close in Toronto.

The Standard & Poor's/TSX Composite Index fell 8.1 percent to 8,537.34, the most since the ``Black Monday'' crash in October 1987.

Auto-parts makers may need as much as C$1 billion ($776 million) in short-term loans to survive the liquidity crisis or risked facing collapse, the Globe & Mail reported, citing a letter from the president of the Automotive Parts Manufacturers Association of Canada, to federal Finance Minister Jim Flaherty.


Magna International Inc. (MG/A CN) fell 8.5 percent to C$36.48. Linamar Corp. (LNR CN) added 0.1 percent to C$8. Martinrea International Inc. (MRE CN) dropped 6.3 percent to C$3.75.

Bank stocks: Six of Canada's eight biggest banks were downgraded by Dundee Securities analyst John Aiken, who predicted that the lenders' per-share profits will shrink by 15 percent on average in the current quarter from a year earlier because of lower capital market revenue and credit losses.

Royal Bank of Canada (RY CN), which Aiken cut to ``sell'' from ``buy,'' fell 8.6 percent to C$42.50. The country's biggest lender, advanced 7.7. Toronto-Dominion Bank (TD CN), which he cut to ``neutral'' from ``buy,'' dropped 8.5 percent to C$52. Bank of Nova Scotia (BNS CN), downgraded to ``sell'' from ``buy,'' fell 7.1 percent to C$36.32. National Bank of Canada (NA CN), cut to ``neutral'' from ``buy,'' dropped 8.8 percent to C$7.1 percent to C$42.71. Canadian Western Bank (CWB CN), downgraded ``neutral'' from ``buy,'' decreased 8.8 percent to C$15.50. Laurentian Bank of Canada (LB CN), cut to ``sell'' from ``buy,'' climbed 0.4 percent to C$41.17.

Energy and mining companies may rebound along with price of crude oil and precious and industrial metals. EnCana Corp. (ECA CN) dropped 8.4 percent to C$51.04. Opti Canada Inc. (OPC CN) slid 24 percent to C$3.16. Barrick Gold Corp. dropped 13 percent to C$22.51. Teck Cominco Ltd. (TCK/B CN) declined 17 percent to C$10.76.

Insurance companies: Canada's Office of the Superintendent of Financial Institutions is reviewing capital rules for insurers' segregated funds business to ease pressure on them after stock prices fell, the Globe & Mail reported, citing spokesman Rod Giles. Manulife Financial Corp. (MFC CN), Canada's biggest insurance company, fell the most ever, dropping 15 percent to C$21.17. Sun Life Financial Inc. (SLF CN) dropped 13 percnet to C$26.29.

Canadian Pacific Railway Ltd. (CP CN): The country's second-largest railroad said third-quarter net income fell 21 percent to C$172.7 million ($134 million), or C$1.11 a share, from C$218.6 million, on fuel expenses and investment writedowns. Analysts expected CP Rail to report net income of C$1.14 a share, the average of 9 estimates surveyed by Bloomberg News. The shares fell 8.8 percent to C$43.65.

Rogers Communications Inc. (RCI/B CN): Canada's largest wireless carrier posted third-quarter profit that exceeded analysts' estimates on demand for Apple Inc.'s iPhone. Net income almost doubled to C$495 million, or 78 cents a share, from C$269 million, Rogers said. Excluding costs such as stock- based compensation, profit was 73 cents a share, beating the 51- cent estimate of analysts surveyed by Bloomberg. The shares dropped 8.9 percent to C$29.07.

Suncor Energy Inc. (SU CN): The second-largest oil-sands producer completed repairs on a hydrogen unit at an upgrader in Fort McMurray, Alberta, and will reach planned processing rates by Nov. 1. The upgrader is producing several distillate products including diesel said Shawn Davis, a spokeswoman for Suncor. The shares fell 12 percent to C$23.18.

Teranet Income Fund (TF-U CN): Borealis Infrastructure Management Inc. said that it's reducing its hostile takeover bid for Teranet, a land registry company, to C$10.25 a share from C$11, citing deterioration in economic and financial market conditions. The shares gained 0.3 percent to C$10.58.

West Fraser Timber Co. (WFT CN): Canada's biggest lumber producer reported a third-quarter loss of 4 cents share excluding one-time items, beating forecasts. Analysts estimated a loss of 18 cents a share on average on that basis, according to Bloomberg data. The shares fell 5.5 percent to C$27.42.

To contact the reporter on this story: John Kipphoff in Toronto at jkipphoff@bloomberg.net.