Canadian stocks rose for the first time in three days as European finance ministers agreed to impose fines on countries that fail to cut deficits and Teck Resources Ltd. gained on an analyst upgrade.
Teck, Canada’s largest base-metals producer, advanced 5.1 percent after HSBC Holdings Plc analyst Jordi Dominguez raised his rating on the company to “overweight” from “neutral.” Canadian Imperial Bank of Commerce, the country’s fifth-biggest bank, increased 1.6 percent as bond yields dropped in Europe. Potash Corp. of Saskatchewan Inc., the world’s biggest fertilizer producer, decreased 2.5 percent on prospects of competition.
The Standard & Poor’s/TSX Composite Index climbed 12.44 points, or 0.1 percent, to 11,517.18.
“To repair the financial system-slash-European banking system is probably the key to turning sentiment around,” said Ian Nakamoto, who helps manage $4 billion as a money manager at MacDougall MacDougall & MacTier Inc. in Toronto. “Regaining confidence in the European banking system will spill over into financial systems throughout the world.”
The S&P/TSX has fallen 5.6 percent since May 12 as world equity markets slumped on concern efforts to contain Europe’s debt crisis will be insufficient or will hamper economic growth. The Reuters/Jefferies CRB Commodity Price Index has dropped 6.3 percent during the period as the U.S. dollar gained 5.2 percent against the euro.
Energy and raw-materials companies make up 46 percent of Canadian stocks by market value.
The euro rose for the first time in four days, rallying from a four-year low against the U.S. dollar. Speculation the Swiss National Bank intervened in the market to weaken the franc against the euro helped spur the multinational currency.
Crude oil gained 0.8 percent to $71.99 a barrel in New York as the U.S. dollar fell. Canadian Natural Resources Ltd. advanced 1.2 percent to C$36.22. Cenovus Energy Inc., the oil company spun off from EnCana Corp. in December, increased 0.7 percent to C$28.06. Oil sands developer UTS Energy Corp. climbed 5.1 percent to C$2.26.
Teck rallied 5.1 percent to C$32.73 as copper climbed for the first time in seven days. Dominguez cited Teck’s share price losses for his upgrade. The mining company has dropped 30 percent since April 6 as copper futures have tumbled 23 percent.
Copper and molybdenum producer Mercator Minerals Ltd. soared 11 percent to C$1.80 after reporting what it called record production for April.
Five of Canada’s six largest banks rose as the S&P/TSX erased a loss that grew as large as 0.9 percent earlier in the day. Royal Bank, Canada’s largest bank, gained 0.8 percent to C$52.89 after touching a nine-month low. CIBC advanced 1.6 percent to C$72.13.
BlackBerry maker Research In Motion Ltd. rebounded 1.8 percent from a 14-month low to C$61.10. Canada’s largest technology company decreased 5.1 percent yesterday after Piper Jaffray Co. analyst T. Michael Walkley reduced his 12-month price estimate on the shares.
Potash Corp. slumped 2.5 percent to C$98.74, falling below C$100 for the first time since November. In a note to clients, Dahlman Rose & Co. analyst Charles Neivert said BHP Billiton Ltd.’s plans to enter the potash market are “a major threat to the existing players.”
Transcontinental Inc. jumped 7.8 percent, the most in seven months, to C$13.24. The second-quarter profit of Canada’s largest printer topped the average of six analyst estimates by 31 percent, excluding certain items. Shares of the Montreal- based company have soared 57 percent over the past year as it has surpassed average analyst earnings estimates for five straight quarters.