Shares in several major forestry companies fall as US housing stats show potential slowing demand

By Ian Bickis
The Canadian Press in The Globe and Mail
September 19, 2018

Shares in several major Canadian forestry companies closed down Wednesday after an analyst downgrade and lower-than-expected building permits for the crucial US housing sector. CIBC analyst Hamir Patel said that the bank has reduced its outlook on the industry, including downgrades on Interfor , Resolute, and West Fraser, as concerns mount about US housing. “With more warnings signs flashing in the US housing market … we are now moving to the sidelines on all commodity wood product stock,” wrote Mr. Patel. Canfor closed down 6 per cent, Resolute ended down 4.5 per cent, Interfor down 4 per cent, and West Fraser down 3.9 per cent. The shift came as the U.S. Commerce Department said Wednesday that applications for building permits, seen as a reliable indicator of future activity, fell by 5.7 per cent in August after a 0.9-per-cent rise in July.