Canadian stocks rose for a fourth day as Teck Resources Ltd. jumped after reinstating its dividend and an index of gold companies gained on demand for the precious metal amid the fiscal crisis in Europe.
Teck, Canada’s biggest base-metals producer, surged 5.5 percent after resuming its semiannual dividend of 20 cents a share. Barrick Gold Corp., the world’s largest producer of gold, gained 1.8 percent.
The Standard & Poor’s/TSX Composite Index advanced 26.31 points, or 0.2 percent, to 12,160.87. Earlier in the day, the index retreated as much as 149.24 points after the European Union increased its estimate of Greece’s budget deficit.
“When our Bank of Canada governors are talking about the economy getting a little better, when corporate earnings are getting a little bit stronger, all those things tend to be helpful for us,” said Brendan Caldwell, chief executive officer of Caldwell Investment Management Ltd. in Toronto, which manages about C$1 billion ($1 billion).
The S&P/TSX has climbed 0.7 percent this week, the second week of an earnings-reporting season in which 85 percent of S&P 500 companies and four of seven S&P/TSX companies have beaten their average analyst estimate so far.
Raytheon Co., New York Times Co., Hershey Co. and Canadian well driller Precision Drilling Trust were among companies to report profit above the average analyst forecast since the close of trading yesterday.
Bank of Canada Governor Mark Carney said today 2010 should mark a “turning point” in which private sector demand will replace government stimulus as the main source of growth.
Teck said dividends will resume in July after being discontinued in November 2008 to help repay debt. Shares of the Vancouver-based company soared 5.5 percent to C$43.99 as at least three analyst raised their 12-month price estimates on the stock.
Gold stocks rallied for a second day after Moody’s Investors Service cut its rating on Greek debt one level to A3.
Barrick rose 1.8 percent to C$40.18. Goldcorp Inc., Canada’s second-largest producer of the metal, advanced 0.9 percent to C$39.87. Golden Star Resources Ltd., which mines gold in Africa, led the S&P/TSX with a 5.8 percent increase to C$4.20.
European Goldfields Ltd. tumbled 5.7 percent, the most among S&P/TSX companies, to C$6.99. The company mines base and precious metals in Greece.
Metro Inc., Canada’s third-largest grocery chain, gained 5.2 percent to C$44.19, the highest since at least 1993, after National Bank of Canada analyst James Durran raised his rating on the stock to “outperform” from “sector perform.”
Cenovus Energy Inc. sank 1.9 percent to C$28.54. The company said a third-party evaluation of its economically recoverable bitumen resources provided a best estimate of 5.4 billion barrels. UBS AG analyst Matt Donohue had forecast 5.5 billion to 6 billion barrels.
Orleans Energy Ltd., which produces oil and gas in western Canada, soared 16 percent to an 18-month high of C$3.07 after announcing drilling results. Macquarie Group Ltd. analyst Leon Knight increased his rating on the company to “outperform” from “neutral.”
To contact the reporters on this story: Matt Walcoff in Toronto at firstname.lastname@example.org